« I am proposing to create another kind of business, based on the selflessness 

that is in all of us, I am calling it Social Business »

Prof. Muhammad YunusNobel Peace Prize Laureate Founder of the Grameen Bank Initiator of the Idea of social business

The Vision of Social BusinessMarket Based Solutions to Social Problems

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2 Fondation Grameen Crédit Agricole

Providing the poor with affordable

essential goods and services

Creating inclusive value chains for the benefit of local disadvantaged communities

Typology of SB by social issues to be addressed

Nutrition

Drinking water

Energy

Healthcare

Education

Financial services

Any type of products and services

Redistribution mechanisms of the value created through :

-Fair trading-Shareholding by local stakeholders or producers-Profit sharing schemes

Making goods and services effectively

accessible to disadvantaged

or excluded people

Creating job opportunities and income generating

activities for handicapped,

disadvantaged, excluded people

Healthy food ex: « Projet Malin »

Healthcare, ex: « Optique solidaire »

Energy, ex: « Energie pour tous »

Housing ,ex:« Habitat et Humanisme »

Financial services, ex: ADIE

Entreprise d’insertion

Local development in disadvantaged areas

Developing countries Developped countries

Mission-driven finance

Typology of Social Business by shareholding structure

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Large Corporates

(+SB Investment Funds)

NGOs(+SB Investment Funds)

Local Entrepreneur

(+SB Investment Funds)

Member or user owned companies(+ SB Investment Funds)

Social Business need a strategic investor:-Motivated by the social mission

-Having the relevant know-how and management capacities

Social Business Funds are facilitators, taking minority stakes alongside strategic

investors and supporting the project in three ways:Patient capital: equity, subordinated loans, shareholder accounts

Social performance measurement and reporting

Advisory services and non financial development and management support

Typology by families of investors 

4 Fondation Grameen Crédit Agricole

Development Finance Institutions

NGOs and

Foundations

HNWIs Private Equity

Investors

Institutional

Investors

Corporates

Social Business Funds

Retail investors

and employees

90-10 SB Funds

Qualified / well informed investors General public

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The Grameen Crédit Agricole Social Business Fund *

Grameen Crédit Agricole Microfinance Foundation

On March 5th, the Board of Directors of Grameen Credit Agricole Foundation has decided* to set up the Grameen Credit Agricole Fund.Objective: To rally socially motivated investors to the development of SB companies

A Fund 100% dedicated to SB : 15 to 20 millions Euros for debt and equity investment in SB enterprises

The Fund will be a SB in itself : the fund is aimed at the maximisation of the social impact. No enrichment of investors beyond their nominal investment.

The Fund will be closely linked to the Foundation as key investor and exclusive advisor to the Fund.* Subject to approval by the CSSF

GCA Fund – Investment policy

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FINANCIAL INSTRUMENTS

EQUITY-Minority investor

-Involvement in the governance-Exit valuation

DEBT- Interests of loans

SECTORS

ESSENTIAL GOODS AND SERVICES FOR THE 

POOREST-Agriculture and agro industries

-Other industrial sectors (energy, waste management, housing,

health…) -Services (Culture,

communication, transports…)

FINANCIAL SERVICES AND INFRASTRUCTURES

- Financial services: agricultural micro-insurance, mobile banking, social business stock exchanges

GEOGRAPHY

DEVELOPING COUNTRIES

-Sub-Saharan Africa -South and South East Asia

-The Middle-East and North Africa

DEVELOPED COUNTRIES25% max in Europe

A sustainable economic model 

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Charges Revenues

EQUITY•Entry fees•Solidarity fees•Value at exit

CASH MANAGEMENT•Revenues from cash management

DEBT•Interests on loans

OPERATIONAL COSTS•Indemnification of the Foundation as exclusive advisor •Legal fees •Audit fees•Day-to-Day managers•Depositary and Administrative agent (Caceis)•Other costs

COSTS OF RISKS•Default, currency, country

Revenues of the Fund to cover costs and risks

Legal structure of the GCA Fund

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• Regulated by the CSSF (Commission de Surveillance du Secteur Financier du Luxembourg)• Umbrella Fund with compartments• Distribution restricted to professionals, Institutional investors or well informed investors

(minimum subscription amount : 125,000€)

Specialized Investment Fund (SIF)

• Self managed SICAV: 2 part-time day-to-day Managers• Advisory mandate granted to the Grameen Crédit Agricole Microfinance Foundation• Depositary bank and administrative agent mandates granted to Caceis Bank Luxembourg

SICAV

• In line with cooperative rules, any shareholder who redeems his shares, is entitled to receive only the par value of his shares

• At liquidation, the rules are those applicable to all commercial companies• The governance rules are those of a shareholding company

Cooperative company in the form of a Limited Company (Coop SA)

• European Regulation still in discussion at European Parliament : final vote expected by the end of 2012

• EuSEF will provide recognition (certification) to eligible Social Entrepreneurship Funds• The recognition will trigger a European Passport which will facilitate its distribution in all

European members states

European Social Entrepreneurship Fund ?

The Foundation will be in position to control that the investment policy is fully aligned with its own principles and its definition of Social Business

Fondation’s involvement

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Management organisation chart

Investment Committee

Board of Directors Day-to-Day Managers

Custodian

Research, analysis and instruction

Mandate

Administrative Management

CSSF

ReportingExclusive mandate

Investors

« Grameen Crédit Agricole

Social Business Club

»

Consultation

March 5, 2012:  Approval of the Project by the Board of the Foundation

March 27, 2012: Submission to the CSSF in Luxembourg

May 31, 2012: Second submission to the CSSF with complements

November 2012: approval of the Fund by the CSSF

November 13, 2012 : registration of the Fund

November 16, 2012 : 1st Board meeting

November 2012 to June 2013 : Placement to Institutional and individual Investors

June 30, 2013: First closing

Milestones

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Recognising SB as an Asset Class of its own in the Future

Regulatory framework to recognise Social Business as its own asset class to make it

available to a wider class of investors

Laiterie Du Berger (Sénégal)

The Foundation’s Social Business Portfolio

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• The Laiterie du Berger offers a business solution to bad nutrition and poverty in the Sahelian region of north Senegal.

• It collects milk from nearly 1000 Fulani herders to process it into fresh dairy products.

• Unique market outlet for these herders, the Laiterie du Berger promotes the local dairy and livestock production and strengthens the economic fabric in rural areas.

• It also contributes to better food security in Senegal where over 90% of dairy consumption depends on powdered milk imports.

Grameen Danone Foods Limited

The Foundation’s Social Business Portfolio

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• Grameen Danone Foods Limited (GDFL) is a joint venture founded in Bangladesh in March 2006 by the Grameen and Danone groups.

• Pioneer of Social Business, GDFL wants to improve children’s health with a yogurt specially made to satisfy dietary deficiencies essentially found in children, and affordable to the lowest budgets.

• To implement this project, GDFL was set up in the socio-economic fabric of the Bogra region, 250 km to the north of Dhaka, to promote income-generating activities: GDFL buys milk from small farms and develops a rural door-to-door sales network (the Grameen ladies).

Babyloan

The Foundation’s Social Business Portfolio

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• At the crossroads of the world of finance and solidarity, Babyloan provides consumers with a new way to commit themselves by supporting micro entrepreneurs in the south to help them escape poverty and dependency.

• Babyloan is the first European platform of solidarity loans and it allows each web-user to become a solidarity banker by joining the Babyloanian community.

Chamroeun

The Foundation’s Social Business Portfolio

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• Chamroeun is a Cambodian microfinance institution whose core business relies on its social commitment.

• It provides financial services to the poorest; those excluded from the range of classical microfinance institutions.

• In order to maximize the credit impact and efficiently support the poorest families, it also provides a whole range of economic, social and personal coaching and education services. Chamroeun re-invests its profits in its activities to strengthen its social mission.

PhileoL Madagascar

The Foundation’s Social Business Portfolio

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• PhileoL Madagascar has been established since 2008 in Androy, the driest and poorest region of Madagascar.

• It has developed an inclusive oilseed operation, collecting jatropha and castor oil seeds among local farmers, transforming these oils locally and exporting them to the region and to Europe, where they are prized by the green industry.

• Thus, PhileoL secures farmers' income and promotes local agricultural production.

UV+ Solaire with the 1001 Fontaines NGO

Under discussions

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• UV+ Solaire is the head-end of social franchising "1001 Fontaines" which combines social, technological and organizational innovations to provide drinking water to poor farmers. A social franchise operates as a franchise business but with a general interest objective.

• A simple technical solution, which ensures that contamination due to bacteria is eliminated

• An organizational dimension: a social franchise model, notably allowing scaling up in developing countries

• A distribution innovation: UV + Solaire reaches the last mile, i.e. the poorest and most remote villagers

• A durable solution, based on the “small private operators” concept. This ensures that the system is self-sustaining. It creates an economic activity which depends on the system being maintained.

Biotropical

Under discussions

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• Biotropical is a Cameroonian company developing an inclusive agricultural value chain that focuses on the production, manufacturing and sale of organic and fair trade tropical fruits.

• Since its creation in the year 2000, the company works with smallholders providing them with seedlings, trainings, building of new roads and wells for their villages and increasing their income.

Contacts

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Fondation Grameen Crédit Agricole

www.grameen-credit-agricole.org5, allée Scheffer

L- 2520 Luxembourg

Offices : 100 boulevard du Montparnasse – 75014 Paris, France

Jean-Luc Perronjean-luc.perron@credit-agricole-sa.fr

T: + 33 1 43 23 58 78

Christophe PersonChristophe.person@credit-agricole-sa.fr

T: + 33 1 57 72 02 98

Pascal WebanckPascal.webanck@credit-agricole-sa.fr

T: + 33 1 57 72 44 61

Jurgen HammerJurgen.hammer@credit-agricole-sa.fr

T: + 33 1 57 72 02 47

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This document was prepared by Grameen Credit Agricole Microfinance Foundation, Foundation of Luxembourg law with headquarters at 5 Allée Scheffer L-2520 Luxembourg.

This document is intended exclusively to institutional, professional, qualified and sophisticated investors and distributors. It should not be given to the public, private clients and individuals within the meaning of any jurisdiction, nor to “US Persons”.Targeted Investors, with regard to the European Union, are "Professionals" investors as defined in Directive 2004/39/EC of 21 April 2004 "MIF" or, as appropriate within the meaning of each local regulations and in since supply in Switzerland is concerned, the "qualified investors" within the meaning of the provisions of the Federal Act on Collective Investment Schemes (CISA), the Ordinance on Collective Investment Schemes of 22 November 2006 (CISO) and FINMA Circular 08 / 8 for the purposes of the legislation on collective investment of 20 November 2008. This document should in no way be put into the European Union to investors not "professionals" under MiFID or the meaning of each local regulations, or Switzerland for investors who do not meet the definition of " qualified investors "within the meaning of laws and regulations.

This document is provided for informational purposes only and does not constitute a recommendation, solicitation or offer, advice or an invitation to buy or sell units or shares of the SICAV-FIS project presented in this document and should in no way be interpreted as such.

This document does not constitute the basis of a contract or commitment of any nature whatsoever. All information contained herein is subject to change without notice. Grameen Credit Agricole Microfinance Foundation accepts no liability, direct or indirect, that may result from the use of all information contained in this document. Grameen Credit Agricole Microfinance Foundation can not be held responsible for any decision taken on the basis of this information.

The information in this document are communicated on a confidential basis and may not be copied or reproduced, modified or translated, or distributed without the prior written consent of Grameen Credit Agricole Microfinance Foundation, to any third party or any country where such distribution or use would be contrary to the laws and regulations in force or compel Grameen Credit Agricole Microfinance Foundation to comply with registration requirements to the supervisory authorities of these countries.