NEWSWORTHY

Calvert Foundation Chosen as
First Issuer for New eBay Company

Yesterday eBay launched a new website called MicroPlace that provides an easy way for everyday people to invest in the world’s working poor by leveraging the power of microfinance, a proven solution to alleviate global poverty. With the launch of MicroPlace.com, consumers can use the Internet to make microfinance investments that provide a financial return while simultaneously addressing global poverty. Additionally, MicroPlace’s unique business model creates a self-sustaining marketplace that will serve as an efficient and scalable way for capital to flow into the microfinance industry. 

Calvert Foundation was selected as the first issuer to sell investments on MicroPlace, as well as an early partner in the development of the new venture. "In the 1980s, we were working hard to demonstrate that microfinance could be operated in a sustainable manner, and in the 1990s, the focus shifted to how to grow it to scale," said Shari Berenbach, Calvert Foundation's Executive Director. "By this decade, we are now looking at how to bring microfinance into the mainstream."

Calvert Foundation will use the funds generated from the sale of securities on MicroPlace to invest in microfinance institutions that investors select from the online options. Calvert Foundation will also be responsible for making interest and principal payments to investors.

Yesterday's launch was a rousing success. Over 150 people purchased investments issued by Calvert Foundation on the website. And this was only the first day!

MicroPlace and Calvert Foundation were also fortunate to receive attention from a range of publications including the Reuters, Business Week and the BBC. Hear what the media is saying:

> BusinessWeek
> Reuters
> BBC
> Read the press release.

PORTFOLIO NEWS

Calvert Foundation Selects Microfinance Partners for MicroPlace Launch

SPOTLIGHT ON

Why Microfinance Investment Is So Important – and  What You Can Do

What is Microfinance?
Microfinance provides financial services to the world's working poor, primarily in developing countries. Microcredit, currently the most well-known product within microfinance, is the extension of small loans (often less than $100) to people too poor to qualify for traditional bank loans or other forms of credit. In contrast to charity, these small loans enable the working poor to lift themselves out of poverty through their own hard work and entrepreneurial spirit. Started in 1974, microfinance is now a proven solution to global poverty worldwide: more than 100 million people from dozens of countries have borrowed microfinance loans, and they consistently repay at rates of more than 97 percent. The idea that the working poor can lift themselves out of poverty with dignity appeals to people of all political, social and economic backgrounds.

The Need for Microfinance Investment
Despite the long-proven success of microfinance as a poverty alleviation strategy,demand still far outweighs its availability (see chart at right). However, as microfinance gains attention from the media and grows in popularity with the investment community and the public at large, we expect that more and more capital will flow to microfinance institutions (MFIs) working in developing countries, such as the ones listed in the PORTFOLIO NEWS section above. If you have a Community Investment Note with Calvert Foundation, you are already supporting these efforts - even more so if you have targeted your Note internationally.

What You Can Do
Are you ready to get involved? Do you want to use investment to fight poverty and empower the world's working poor? Here are two ways you can get started (or do more!) today:

1. Spread the Word!
Check out MicroPlace and use their "send an ecard" feature in the lower right-hand side of their homepage to invite 5 of your friends, family and co-workers to check out the new site.

2. Support Calvert Foundation
Through MicroPlace we are positioned to substantially increase Community Investment Note sales. However, for every dollar raised, we need core capital in order to make loans to our microfinance institution partners.

Every $1 of core capital supports $20 of notes raised through MicroPlace – but also through investments made directly to us. On the day of this exciting breakthrough and significant ramp-up of market penetration, we are reaching out to our core supporters for help. A donation to our Giftshares program will bolster the core capital requirements needed to realize this opportunity.

> Learn more about donating to GiftShares.

ASK SHARI

How does MicroPlace fit into Calvert Foundation's plans?

When I first met Tracey Pettengill Turner, the founder of MicroPlace, two years ago, I was thrilled to find such a like-minded colleague who also wanted to make it possible for average individuals to invest in microfinance. Given the objectives Calvert Foundation and MicroPlace share, I immediately offered our help. 

Calvert Foundation had long dreamed of being able to sell the Community Investment Note online, but we lacked the resources to develop the systems and the cost of clearing the investment online was prohibitive - which made us especially excited when eBay agreed to join up with Tracey and to launch MicroPlace. eBay deserves a lot of credit for making the talent available to develop the systems for such a site and involving PayPal to clear these transactions.  They were also wise to establish a broker-dealer that could sell the Community Investment Note online in a manner fully consistent with securities regulations.

Beginning in the Fall of 2006, Calvert Foundation began working with MicroPlace in earnest as we conducted market research and systems development to drive this to launch. Calvert Foundation signed our contract with MicroPlace in June 2007 and we've been working since then to bring a wealth of investment opportunities to the site! It’s hard to believe that the launch has finally come! 

MicroPlace allows more people to be a part of the positive impact microfinance generates. The online platform and $100 minimum will open microfinance investment to a whole new market of investors. We are excited to watch the social impact of Calvert Foundation’s portfolio grow along with the number of community investors.

Our partnership with MicroPlace has already allowed us to introduce new microfinance intermediaries to our portfolio and offer additional capital to organizations previously in our microfinance portfolio.  Right now we are offering microfinance investments through MicroPlace in over 10 countries with many more on their way. And, as always, our existing portfolio is already financing dozens of microfinance institutions at work around the world.

As mentioned above, the need for investment in microfinance is extraordinary, with only an estimated 4% of the demand for microfinance being met.  Our partnership with MicroPlace will increase the amount of capital flowing to communities in need around the world, while we continue – and remain truly committed to – helping communities here in the US as well.

Overall, we are excited about this opportunity and hope you will support us as we forge ahead!

> Ask us a question!