UNDP, IIX sign MoU to advance gender-inclusive finance in Bangladesh

The United Nations Development Programme (UNDP) and Impact Investment Exchange (IIX) have signed a Memorandum of Understanding to promote gender-inclusive sustainable finance in Bangladesh.

The agreement was signed on February 17 at the UNDP Bangladesh office.

The partnership will support the development of “Orange Bonds”, a financial instrument designed to raise funds for women-led businesses and underserved communities. The initiative aims to mobilise private investment while ensuring transparency, accountability and measurable development outcomes.

Under the collaboration, UNDP and IIX will conduct studies, facilitate policy dialogue, engage stakeholders and provide technical assistance and training to potential bond issuers. The two organisations will also work to strengthen monitoring and reporting systems to ensure investments deliver measurable impact.

Stefan Liller, Resident Representative at UNDP Bangladesh, said mobilising capital for gender equality and climate resilience requires strong market infrastructure, informed policy dialogue and trusted partnerships.

“This collaboration with IIX allows us to combine UNDP’s policy expertise and country presence with global innovations in sustainable finance,” he said.

IIX, which developed the Orange Bond Principles, brings experience in gender-focused investing, bond structuring, independent verification and impact measurement. The Orange Bond Initiative, aligned with Sustainable Development Goal 5 on Gender Equality, aims to channel investment towards projects supporting women’s empowerment and climate action through clear standards.

Prof. Durreen Shahnaz, Founder and CEO of IIX, said the partnership reflects a shared commitment to strengthening Bangladesh’s impact investment and Orange capital markets ecosystem.

“The partnership will enable the institutional adoption of inclusive finance, creating pathways for meaningful and measurable change for women and underserved communities to help achieve the country’s SDG agenda,” she said.

Bangladesh is preparing to graduate from Least Developed Country status, a transition that is expected to reduce access to concessional finance and trade benefits. In this context, officials said strengthening capital markets and introducing innovative financial instruments will be important to sustaining inclusive and resilient growth.

The UNDP–IIX partnership aims to contribute to building a transparent and inclusive sustainable finance ecosystem aligned with Bangladesh’s long-term development objectives.