Tokyo, Japan, February 13, 2026—To promote digitalization and jobs in emerging markets, IFC, a member of the World Bank Group, has partnered with Sumitomo Mitsui Financial Group (SMFG), one of the leading Japanese financial groups with a strong presence in Asia-Pacific, to launch the world’s first social bond exclusively dedicated to digital inclusion, including for micro, small, and medium enterprises (MSMEs), totaling US$500 million. Expanding financial access for MSMEs through digital tools further supports their role as the primary driver of jobs in emerging markets.
As an anchor investor, IFC collaborated with SMFG to conceptualize its Social Finance Framework in line with the ICMA Social Bond Principles (SBP). This landmark transaction marks IFC’s first investment in a thematic bond focused on digital inclusion as well as its first investment in Total Loss-Absorbing Capacity (TLAC)-eligible instruments in the Asia Pacific region.
IFC’s investment proceeds will be allocated to Eligible Digital Inclusion Social Projects defined in SMFG’s social finance framework, including the loan portfolio of SMFG India Credit Company Limited (SMICC), a key SMFG subsidiary in India, targeting MSMEs through digital channels. This initiative will help bridge India’s persistent MSME finance gap by leveraging digital tools to streamline loan processes and use alternative data for better credit assessments, thereby supporting business growth and fostering job creation.
“Worldwide, MSMEs are an important engine for creating jobs. This groundbreaking issuance represents a major step forward in using capital markets to expand digital and financial inclusion for MSMEs to help fuel such job creation,” said Sarvesh Suri, IFC's Regional Vice President for Asia and the Pacific. “IFC is delighted to be partnering with a leading institution like SMFG for this impactful financing.”
“We are proud to partner with IFC on this groundbreaking initiative. This bond will not only strengthen our commitment to financial inclusion in India but also set a new benchmark for social finance in the Asia Pacific region.” said Masayuki Takanashi, SMFG’s Group Chief Sustainability Officer.
According to the World Economic Forum estimates, US$2.1 trillion will be required over the next five years to significantly reduce the global digital divide. Since the launch of the ICMA SBP in 2017 which recognized digital access for underserved populations as an eligible use of proceeds, ICMA-compliant social bonds targeted digital access has been extremely limited, and none in the world was issued exclusively for digital inclusion purposes until now.
Digital inclusion is recognized as a critical enabler of economic participation, innovation, and resilience. By structuring and investing in this epoch-making bond, IFC and SMFG are demonstrating how capital markets can be harnessed to address one of the most pressing global challenges — the digital divide — while creating a replicable model for other issuers around the world.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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