SVMN October 2007 Meeting - Calvert Foundation & eBay Microplace (Shari Berenbach)

Calvert Foundation MicroPlace’s First Issuer Shari Berenbach Silicon Valley MicroFinance Network November 5, 2007

Calvert Foundation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

“ Calvert Continuum” of enterprises and brand? ,[object Object],[object Object],[object Object],CF

Calvert Foundation - three social enterprises 1. 2. 3.

Calvert Community Investments Framework Calvert Community Investments 2,600 Investors $120 Million CCI $120 Million Portf. 220 Groups Repaid Repaid ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Individuals Foundations/ Donor Advised Corporations Religious organizations Investment dollars Loans INVESTORS BORROWERS Community development loan funds Community development corporations Micro-finance institutions Non-profit facilities / Coop’s Social enterprises

| 6 Standard ‘wedding cake’ structure shields retail investor from risk – Establishes framework for MFI targeting Community Development, Microfinance and Social Enterprises Senior Capital Subordinate Debt Guarantees Net Assets Loss Reserves Governance Professional Management Analysis, Packaging and Admin Corps Faith Based Institutions Investment Funds Foundations Individuals

Calvert Foundation ,[object Object],[object Object],[object Object]

Calvert Foundation’s Community Investor Profile 2005 *

Calvert Foundation - MicroPlace Collaboration Value Proposition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],To allow Calvert Foundation to ramp-up CCI Note liabilities – needed to ramp up balance sheet capacity Grant funded net worth & LLR – Omidyar Network, Rockefeller Fdn Jr. Subdebt – MacArthur Foundation, Doen Foundation, DeutscheBank Sr. Subdebt - OPIC

What is MicroPlace? Individual investors Security Issuers $250 $250 $300 $500 $500,000 $1,000,000 MFIs $500,000 $1,000,000 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1 A security is a contract that can be assigned a value and traded. In the United States, all securities must meet state registration requirements before they can be sold to the public. Examples include a note, stock, preferred share, bond, or virtually any other financial asset. In general, any transaction that involves an investment of money in an enterprise, with an expectation of profits to be earned through the efforts of someone other than the investor, is a transaction involving a security. (Examples for illustration) Other issuers to be identified MicroPlace is an online brokerage that raises capital for Microfinance institutions & funds through the sale of securities 1 to U.S. individual investors

Calvert Foundation- Microfinance Investment Strategy ,[object Object],[object Object],[object Object],[object Object],2007 + Onward ! MicroPlace collaboration will lead to a new MicroFinance Strategy - CCI Notes distributed and sold on-line - More direct lending in partnership w/ Sub-Advisors to Tier I & II MFIs - Calvert Foundation anticipates becoming a significant issuer on the MicroPlace platform 1995-2007

Minimum Investment Criteria According to the MicroBanking Bulletin, operational self-sufficiency is defined as Financial Revenue / (Financial Expense + Net Loan Loss Provision Expense + Operating Expense) * Leverage: Equity / Total Assets greater than or equal to 12% 11 Charge-offs less than or equal to 5.00% 10 Portfolio at Risk over 30 days less than or equal to 6.00% 9 Demonstrated community support (and support from other funders) 8 Sound financial condition, including ability to repay investment 7 Portfolio diversification 6 Minimum loan portfolio of $3 million 5 Minimum total assets of $5 million 4 Strong and seasoned management where CEO has been with the institution more than 12 months 3 Minimum two-year track record where Operating Self Sufficiency* is greater than or equal to 100% 2 Minimum three-year track record with audited financial statements 1 Organizations that meet the initial criteria identified in A, must also meet most of the following criteria: Financial and Other Criteria: B. Supports diverse communities in urban and/or rural areas in developing countries 3 Contributes to growing the local economy, expanding opportunity or promoting work-related activities, homeownership and non-traditional business owners 2 Focuses on low-income communities and individuals, as well as organizatons without access to traditional sources of capital 1 Desirable MFIs are those with an explicit development mission that: Development Criteria: A.

Sub-Advisor Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Calvert Foundation: Loan Product Details ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],**not to exceed the lesser of 20% of Total Assets or $3 million.

The Loan Process Calvert Foundation sub-advisor evaluates and recommends MFI for loan Calvert Foundation approves MFI for due diligence, signs term sheet with MFI and sub-advisor Sub-advisor conducts due diligence on MFI (on-site visit, review of reports) Calvert Foundation Credit Committee reviews / approves maximum loan amount to MFI Formal loan agreement negotiated and signed. Calvert Foundation disburses minimum loan amount to MFI. Listing for Calvert Community Investment Note targeted at MFI appears on MicroPlace for 90 days MicroPlace investors purchase Calvert Community Investment Note targeted at MFI After 90 days, Calvert Foundation disburses incremental funds invested above minimum loan amount, up to max approved 1 2 3 4 5 6 7 8 90-day listing cycles continue until maximum approved funding is raised, or otherwise agreed by Calvert Foundation & MFI Estimated Timing: 30 days Estimated Timing: 30 days Estimated Timing: 90 days per listing cycle

Loan Disbursement Process – Example #1 Minimum Guaranteed Amount: $250,000 Maximum Approved Amount: $1,000,000 0 Days 90 Days 180 Days 270 Days $250,000 $500,000 $750,000 $1,000,000 Amount Raised from MicroPlace Investors Amount Disbursed to MFI from Calvert Foundation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Loan Disbursement Process – Example #2 Minimum Guaranteed Amount: $250,000 Maximum Approved Amount: $1,000,000 0 Days 90 Days 180 Days 270 Days $250,000 $500,000 $750,000 $1,000,000 Amount Raised from MicroPlace Investors Amount Disbursed to MFI from Calvert Foundation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

MFIs At Launch 1 5 10 5 11 16 Total 0 0 4 3 1 4 Africa 0 3 1 0 4 4 Eurasia 0 2 0 0 2 2 Asia 1 0 5 2 4 6 Latin America Bank NBFI NGO Tier I Tier II Total Region Kenya Women’s Finance Trust, PRIDE Tanzania, Lapo (Nigeria), Sinai Aba Trust (Ghana) Africa Imon(Tajikstan), Findev (Azerbijan), Azercredit (Azerbijan), Credo (Georgia) Eurasia TPC (Cambodia), Credit (Cambodia) Asia Fundeser (Nicaragua), D-Miro (Ecuador), Banco Solidario (Ecuador), Prestanic (Nicaragua), ProMujer Bolivia Latin America

Looking Ahead Partial Pipeline List Big Challenge Ahead – Addressing Local Currency Concerns! Kenya: Faulu Kenya; Uganda: Uganda Finance Trust, UML, Finca Uganda Africa Kazakstan: Bereke; Kyrgyzstan: Inexmibank Eurasia India: IIRM, BSS, SKS, Grameen Koota, FWWB India Mongolia: Xac Bank: Pakistan: Kashf Asia Peru: Alternativa, ProEmpresa, Crear Tacna, ProMujer Bolivia: FIE, Crecer; Honduras: Finca; Nicaragua: FINDES Latin America

SVMN October 2007 Meeting - Calvert Foundation & eBay Microplace (Shari Berenbach)

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SVMN October 2007 Meeting - Calvert Foundation & eBay Microplace (Shari Berenbach)