Linklaters has acted for the International Finance Corporation (IFC) on Akbank T.A.Ş.’s debut Digitally Native Note (DNN), marking the launch of the world’s first digitally issued gender bond. The initiative aims to broaden economic prospects for women in Türkiye, directing funds to support women-owned small and medium-sized enterprises and expand access to mortgage lending for women across the country.
The bond, valued at US$100,000,000, was issued through Euroclear’s Digital Financial Market Infrastructure (D FMI), a platform built on distributed ledger technology. The DNN was both issued and settled entirely within the digital system, achieving T+0 settlement, allowing the transaction to complete within the same day. Citi acted as dealer, as well as issuing and paying agent.
The deal represents another step in the growing digitalisation of global financial markets, an area in which Linklaters has been increasingly active. The firm previously advised Euroclear during the creation and rollout of its D FMI in October 2023 and has supported several issuances conducted on the platform since its launch.
Richard Hay, Capital Markets partner and UK Head of FinTech at Linklaters, said: “Many congratulations to our client IFC, and Akbank as issuer, for this novel transaction on Euroclear’s D-FMI. This is another significant milestone in the development of the digital bond market, and demonstrates the movement towards increasingly digital financial markets.”
The international team from Linklaters working on the transaction was led by partners Dr Alexander Schlee and Richard Hay, with support from managing associate Adjoa Abekah-Mensah and counsel Wolfgang Ettengruber.
Akbank’s gender bond is expected to play a role in expanding financial inclusion in Türkiye, particularly for women entrepreneurs who face ongoing challenges securing funding. By issuing the bond through a fully digital infrastructure, the parties involved aim to highlight the efficiencies available within new market technologies while channelling capital directly into targeted social initiatives.
The IFC’s involvement signals continued commitment to leveraging investment tools to support gender equality at a structural level. As digitally driven financial solutions become more prevalent, market observers see this latest development as an example of how innovation and social impact can align within modern capital markets.
