30 Apr 2013

Social business in the Philippines (2) : taking stake in the microfinance industry

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Crowd-funding has emerged as a new (and successful) way to reach unknown people and collect (sometimes) considerable amount of money within a very quick period of time.

This trend is obviously intrinsically linked with the information technologies which have resulted in an unbelievable ultra-connectivity between continents and their inhabitants.
Even if roughly half of the world population has not a permanent access to internet yet, because of equipment deficiencies (poor network-structures or lack of personal equipment), the leverage to raise funds through the social-media tools is largely unharnessed.
But the expansion pace is speeding up. Over the last two years, operations of crowd-funding have been dramatically multiplied, most of the time with the aim to support cause-related initiatives such as humanitarian or development-aid projects.

Growingly, the crowd-funding approach is also used for what could be compared to public call to invest, not to donate. In some cases, there is the danger to communicate on investment opportunities that could be misunderstood by a large array of people who might have not enough financial education to appreciate the underlying risk. An EU regulation is supposed to come up in a near future with a framework to protect the investors, including minimum standards to comply with in term of information to provide (i.e. clear definition of the financial risk, best suitable investors’profile, minimum period of investment, etc …)


The club-deal
, a flexible way to gather people sharing the same convictions

100 impact-oriented shareholders with 5000 € each …
… with the objective is to take a stake in a well-known and long-established financial company in the Philippines, which provides microfinance and SME credit lines (as well as fee-based technical assistance) to a large array of savings and credit cooperatives, rural banks and social enterprises.

Investment is in EUR (no currency risk) with a lock-up period of 5 years and a 8 % annual gross rate (less 15 % withholding tax).

Identified risks (please click on the spreadsheet to read)

SEED-Risks

More info. on : www.seedfinance.net

Read the Fact Sheet and discover our independent analysis of the social and environmental impact of SEEDFINANCE.

Further information available on request.
(This article is provided for informational purposes only and should not be construed as investment recommendations of any sort, an offer to sell, or a solicitation of an offer to acquire any securities, fund interest or other investments or an endorsement of any company mentioned herein).

 

 

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