Calvert Foundation 'Community Investment Notes' Permit U.S. Investors to Follow in Footsteps of Nobel Peace Prize Winner Yunus

December 15, 2006; 06:08 AM

Investors inspired by the groundbreaking microfinance work of Bangladeshi economist and Nobel Prize winner Muhammed Yunus can achieve the same impact in more than 100 countries around the world through "Community Investment Notes," a unique investment opportunity available from Calvert Foundation.

Yunus and the Grameen Bank accepted the Nobel Peace Prize on Sunday (December 10, 2006) for their work in pioneering microlending, what are often tiny loans to help poor entrepreneurs start microenterprises and small businesses. Most of these loans go to women who use the income to support their families' basic needs, create jobs, and become more empowered community members. As loans are repaid, the funds are lent out to additional entrepreneurs who, because of their lack of credit history, often are not able to receive financing from traditional sources.

Though the vast majority of financial support for microfinance is provided through international banks, AID agencies and other institutions, Calvert Community Investment Notes make it possible for U.S. retail investors to invest their capital in microfinance institutions. More than 2,400 investors are already invested in Calvert Foundation's Community Investment Notes, which have financed over 120,000 microenterprises and created over 165,000 jobs around the globe. Since 1995, the Community Investment Notes have channeled U.S. investor dollars to microfinance institutions -- including the Grameen Fund of Bangladesh, associated with the Prize winning Grameen Bank -- in 106 countries.

Shari Berenbach, executive director, Calvert Foundation, said: "Individual investors in the U.S. who find inspiration in the important work of Muhammed Yunus have a real way here to follow his example. Community Investment Notes allow every individual a way to make a difference by investing their capital in impoverished communities -- reversing inequality, attacking poverty at its roots, and creating hope and economic opportunity where it is most needed. The growing ranks of investors in the Community Investment Notes are making a real difference in the lives of hundreds of thousands of people and the communities in which they live all around the world."

Commenting on the importance of the Calvert Foundation, Camilla Nestor, manager, Growth Guarantees, Grameen Foundation, said: "Capital raised through the Community Investment Note has been an important source of financing for several microfinance institutions associated with the Grameen Foundation. It is available on flexible terms, can be used to support local currency loans and helps microfinance institutions focus on serving important local needs."

In terms of its structure, Community Investment Notes act like a fixed- income product that is roughly comparable to a taxable municipal bond. Every dollar invested in Community Investment Notes is placed in a diversified loan pool with the objective of earning both a financial and a social return. The full value of the capital is invested and then reinvested several times in low-income communities -- allowing individual investors to "magnify" the impact of their assets in a way that would be impossible to achieve through a simple charitable donation or other direct-giving efforts. The minimum investment is $1,000, with investors selecting the term (between 1 to 10 years) as well as the interest rate (0-3 percent). Choosing a lower interest rate helps to make credit even more affordable for communities in need. Investors who elect to earn zero interest owe no taxes on their Notes.

Though the 11-year-old Community Investments Notes are not covered by SIPC or FDIC protections, the Foundation has demonstrated an outstanding track record of repayment, with no investor ever losing money. The Community Investment Note holders benefit from rigorous due diligence, diversification and substantial credit enhancements designed to protect individual investors. Community Investment Notes are sold directly by Calvert Foundation and through third party financial professionals, and can be conveniently purchased in brokerage accounts.

Louise Schneider-Moretto, manager, Financial Products and Services Group, Women's World Banking, said: "Calvert Foundation's Community Investment Notes provide critical capital to microfinance institutions throughout Latin America, Eastern Europe, Asia, and Africa. This support allows them to focus on serving low income women through products and services customized to meet local needs."

For examples of Calvert Foundation Community Investment Notes at work around the globe, go to http://www.calvertfoundation.org/.

ABOUT CALVERT FOUNDATION

The Calvert Social Investment Foundation (http://www.calvertfoundation.org/) is a 501(c)(3) nonprofit organization. Calvert Foundation uses the power of investments as small as $1,000 to channel affordable credit to low-income communities, working to end poverty by creating hope and economic opportunity where it is most needed. Calvert Foundation receives investment capital from individuals and institutions, and utilizes industry-leading due diligence to manage a diversified portfolio of high social impact investments in the US and abroad.