Global Gender-Smart Fund (GGSF)
GLS investment
GLS Bank invests nearly EUR 30 million in the Global Gender-Smart Fund (GGSF), the world’s largest gender-lens investment fund, to support the fund’s vision to help address the $1.7 trillion gender gap.
Luxembourg, Sept 2024 – The Global Gender-Smart Fund (GGSF), the world’s largest gender-lens investment fund, has welcomed GLS Bank as a private investor to support the fund’s strategy to strengthen the provision of gender-smart and responsible financial services in developing markets.
GLS Bank announced that it provided a senior note investment of nearly EUR 30 million to the Global Gender-Smart Fund (GGSF), the world’s largest gender-focused debt fund, thus investing along with the fund’s shareholders (the International Finance Corporation (IFC) and OeEB - the Austrian Development Bank, KfW Development Bank (KfW) and BMZ – the Federal Ministry for Economic Cooperation and Development) and other private investors.
Building on its successful 15-year track record, the Microfinance Enhancement Facility (MEF), initially founded in 2009, was transformed into the Global Gender-Smart Fund (GGSF) on 1 January 2024, introducing a new strategy aiming at strengthening the provision of gender-smart and responsible financial services concentrating on underserved women as well as women-owned and women-led businesses in developing markets, thereby seeking to improve livelihoods, increase gender balance and outreach, and promote women’s leadership. Additionally, the Fund aims to improve gender equality at the level of the financial institutions themselves.
Innpact Fund Management, the Alternative Investment Fund Manager (AIFM) in Luxembourg dedicated to impact finance, serves as fund manager and global portfolio manager, while the sourcing, relationship management, and investment decision is conducted by three portfolio managers, Incofin, responsAbility and Triple Jump, all three leading impact investing specialists with extensive global experience. The technical assistance is provided through a streamlined process by a global consortium formed by NIRAS A/S and Women’s World Banking, both gender specialists with extensive experience in the implementation of projects supporting gender equality.
Damian Pilka, Expert in Investment Development of GLS Bank, says: “Social considerations have always been integral to GLS Bank's investment strategy. Our strong partnership with GGSF underscores our commitment to fostering equal opportunities, particularly for female entrepreneurs. Additionally, we provide institutional clients with the opportunity to actively contribute. Through targeted gender-lens investments within a blended finance framework, GLS Bank and its clients gain robust leverage to drive meaningful global advancements in gender equality.”
Ruurd Brouwer, Chairman of the Board for the Global Gender-Smart Fund, adds: “We are very happy to start our partnership with GLS Bank. Sustainable banks like GLS lead the way to increased investments in a more equitable world, whilst the investment itself is protected by the blended finance structure of the fund. Through its support, GLS Bank allows the fund to grow and meet its ambitious objective to help bridge the funding gap for women and female entrepreneurs in developing countries.”
About GLS Bank
The GLS Bank is the first sustainable bank in Germany and was founded in 1974. We take money to where it has a socio-ecological impact. We show what kind of future we want through the projects and companies we finance and illustrate our aspirations in sustainability. For more information, visit www.gls.de