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Iwai Toru
September 15, 2011
TBLI CONFERENCE™ ASIA 2011Workshop 1 – Micro- and Mesofinance
Impact Investment Efforts
©Daiwa Securities Group Inc.1
Table of Contents
1. Public and Private Money for MDGs (P.2~ 5)
2. SRI & Impact Investing Efforts (P.7~21)
3. Conclusion (P22)
Appendix (P24~34)
This document has been prepared by Daiwa Securities Group (Daiwa) based on information, the sources of which are believed by Daiwa to be reliable, but Daiwa makes no representation nor warranty as to the accuracy or completeness of such information. Recipients of this document must make their own decisions on whether or not to adopt the recommendations discussed in this document, based upon their specific situations and objectives. Any use, disclosure, distribution, dissemination, copying, or reproduction of this document without prior written consent from Daiwa is prohibited.
©Daiwa Securities Group Inc.2
(MDGs logos were created by 「Don’t let it be – world poverty」)
Goal 1: Eradicate extreme poverty & hunger Goal 2: Achieve universal primary educationGoal 3: Promote gender equity and empower womenGoal 4: Reduce child mortality ratesGoal 5: Improve maternal healthGoal 6: Combat HIV/AIDS, malaria and other diseasesGoal 7: Ensure environmental sustainabilityGoal 8: Develop a global partnership for development
MDGs (Millennium Development Goals)
Source: The World Bank, “The costs of attaining the millennium development goals.” Summary of World Bank Policy Research Working Paper, “Development Goals: History, Prospects and Costs,” by Shantayanan Devarajan, Margaret J. Miller, and Eric V.Swanson.
In addition to $57 billion of ODA in 1999, another $40-60 billions p.a. are needed to achieve the MDGs .
■Additional fund necessary to; (include double count) (Bil. USD)
Poverty Eradication 39 ~ 54
Education 10 ~ 25
Health care 20 ~ 25
Emvironment 5 ~ 21
©Daiwa Securities Group Inc.3
主要援助国のODA実績の推移(支出純額ベース)
9.39.59.67.7
11.113.1
8.98.99.8
13.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(暦年)
(10億ドル)
米国
フランスドイツ
英国
日本
カナダ
イタリア
(出典)OECD・DAC(注1)東欧および卒業国向け実績を除く。
ODA Trend
Source: website of Japan’s MOFA
Billion USD
Japan
USA
Official Development Assistance by G7
©Daiwa Securities Group Inc.4
Private money for Social Issues
<Background>
Fiscal condition of each country grows increasingly severe (policy makers’ side)
Reflect on the financial crisis (investors’ side)
world’s financial assets = $178 trillion in 2008 (world’s GDP is $58 trillion)
Not only Donations/ODA, but also Investments are required to solve social issues
<Background>
Fiscal condition of each country grows increasingly severe (policy makers’ side)
Reflect on the financial crisis (investors’ side)
worldworld’’s financial assets = $178 trillion in 2008 (worlds financial assets = $178 trillion in 2008 (world’’s GDP is $58 trillion)s GDP is $58 trillion)
Not only Donations/ODA, but also Investments are required to sNot only Donations/ODA, but also Investments are required to solve social issues olve social issues
■ GIIN (Global Impact Investing Network) GIIN is a not-for-profit organization created to “increase the scale and effectiveness of impact investing.”
It was inaugurated at Clinton Global Initiative in Sep. 2009, to measure growth and increase of the social investment, ‘Impact Investment’, in which is more direct and has an immediate result compare to conventional SRI. Representative examples of investment products: vaccine bonds of IFFIm, Generation Investment Management of Al Gore, former US Vice President. Main investment target: poverty & hunger; global warming; water, food and energy; medical care, health, welfare; community development, education
©Daiwa Securities Group Inc.5
17%
32%
18%
3%
30%
55%
7%
7% 4%
27%
Billions of dollars, as of the end of 2009Japan* United Kingdom* Germany* France* United States
(%) (%) (%) (%) (%)Total Financial Assets 15,638 100.0 6,709 100.0 6,688 100.0 5,388 100.0 44,510 100.0
Currency and deposits 8,592 54.9 1,913 28.5 2,560 38.3 1,553 28.8 7,756 17.4Life insurance and pension fund reserves 4,228 27.0 3,615 53.9 2,241 33.5 2,126 39.5 13,191 29.6Shares and other equity 1,104 7.1 744 11.1 523 7.8 879 16.3 13,972 31.4Mutual funds and securitis other than shares 1,047 6.7 218 3.3 1,315 19.7 504 9.4 8,135 18.3Others 668 4.3 218 3.3 49 0.7 327 6.1 1,457 3.3
Total Financial Liabilities 4,085 26.1 2,474 36.9 2,193 32.8 1,864 34.6 14,068 31.6Net Financial Assets 11,553 73.9 4,235 63.1 4,495 67.2 3,524 65.4 30,442 68.4
Deep pocket seeking quality
Primary sources: Japan: Bank of Japan, Flow of Funds Accounts , June 17, 2010 United Kingdom: Office for National Statistics, Financial Statistics No 580, August 2010 Germany: Deutsche Bundesbank, Financial Accounts for Germany 1991 to 2009. France: Banque de France, Financial Accounts and Financial Balance Sheets, June1, 2010. United States: Federal Reserve Statistical Release, Flow of Funds Accounts, June10, 2010.
* converted into US dollars based on the year-end exchange rates of GBPUSD=1.62, EURUSD=1.43, USDJPY=92.90
Household Financial Assets
Japan United Kingdom
Germany
France United States
Currency and deposits Life insurance and pension fund reserves Shares and other equity Mutual funds and securitis other than shares Others
Currency and
deposits
Currency &
deposits
Insurance&
PensionShares
Mutual funds
Others29%
3%3%
54%
11%
20%1%
38%
34%
8%
29%9%
6%
16%
40%
Insurance&
Pension
Shares
Mutual funds
©Daiwa Securities Group Inc.6
Table of Contents
1. Public and Private Money for MDGs (P.2~ 5)
2. SRI & Impact Investing Efforts (P.7~21)
3. Conclusion (P22)
Appendix (P24~34)
This document has been prepared by Daiwa Securities Group (Daiwa) based on information, the sources of which are believed by Daiwa to be reliable, but Daiwa makes no representation nor warranty as to the accuracy or completeness of such information. Recipients of this document must make their own decisions on whether or not to adopt the recommendations discussed in this document, based upon their specific situations and objectives. Any use, disclosure, distribution, dissemination, copying, or reproduction of this document without prior written consent from Daiwa is prohibited.
©Daiwa Securities Group Inc.7
Extremely Low in Japan
Source:「European SRI Study 2010」; based on Eurosif publication and SIF-J material,
compiled by Daiwa Securities Group. Exchange rate as of Dec 31, 2009
SRI市場規模
4,986
2,141
40558 4
0
1,000
2,000
3,000
4,000
5,000
6,000
欧州(2009)
米国(2010)
カナダ(2008)
豪州・NZ (2010)
日本(2009)
(10億ユーロ)Billion Euro SRI Market size
Europe US Canada Aus/NZ JPN
©Daiwa Securities Group Inc.8
SRI Issues in Japan
1. Inadequate regulation and guideline to promote SRI.2. Less interests in SRI among labor unions, religious
groups or private organizations which have a mission of social contribution.
3. Weak self-awareness in exercising a big impact on social development through financing and investing.
4. Fewer opportunities in school education that teaches how the investment behavior can have social impact.
5. SRI product and service development & offerings
©Daiwa Securities Group Inc.9
New movements in Japan’s SRI
1. Ministry of the Environment Government of Japan,trying to launch a new guideline like PRI for Japanese financial institutions.
2. Japanese Trade Union Confederation (RENGO), announced “Workers’ Capital Guideline”
3. Acknowledge a big social impact in development through financing and investing.
4. Events and Forums for Financial Literacy 5. SRI / Impact investing products
©Daiwa Securities Group Inc.10
• Ministry of the Environment approaches to Japanese financial industry to set up a new guideline for ESG issues
• Public private sector engagement in SRI.
• Working group meeting participants from commercial bank, insurance, investment banking and brokerage houses
1. Guideline to promote SRI
©Daiwa Securities Group Inc.11
2. More interest in SRI by Labor Union
■RENGO ACTION POLICIES 2010-2011
ACTION POLICY 3Efforts for policies and systems toward establishing a reliable society based on fairness and solidarity
• 30. RENGO will strengthen the influence of trade unions on the operation of workers’ capital (reserves contributed by workers), such as pension funds, and will avoid investment in anti-social and anti-labor funds. To this end, RENGO will formulate a “Guideline for the Operation of Social Pension Reserves” (provisional title) based on the Principles for Responsible Investment of the United Nations.
Source Rengo Website http://www.jtuc-rengo.org/about/actionpolicy/a_policy03.html
©Daiwa Securities Group Inc.12
No-financial return
Private
Public
Donation
Grant Aid Yen Loan
SRI(e.g.: Microfinance)
Financial return*
Investment can have social impact
*Possible for negative return due to exchange fluctuations and credit risk and so on.
3. Social Impact through Investing.
©Daiwa Securities Group Inc.13
MFI Loan Portfolio $65.0billion ( MIX、FY2009、1,058MFIs)
Source :CGAP Focus Note No. 70 April 2011, Cross-border Funding of Microfinance* Amounts based on data submitted by 61 funders and 90 MIIs.
$21.3 billion* (2009)
Cross-border funding landscape to MFIsPublic donors and
Investors(Multilaterals, Bilaterals,
DFIs)
$14.6 billionMicrofinanceInvestment
Intermediaries(MIIs)
Private donors and Investors(Foundations,
Institutional andIndividual Investors)
$6.7 billion
Apex & other Intermediaries
(Support for microfinance at all levels of the financial system: retail, market infrastructure, and policy)
3. Big impact in social development
©Daiwa Securities Group Inc.14
May 15 (Sat) May 15 (Sat) –– June 13 (Sun), 2010 June 13 (Sun), 2010
@@Tokyo MidTokyo Mid--Town Design HubTown Design HubHost: Host: Committee for Committee for ‘‘Imagine Imagine another Life through the another Life through the ProductsProducts’’, , CANPANCANPAN CenterCenter
Special Sponsor: Special Sponsor: Daiwa SecuritiesDaiwa Securities
October 31 (Sun) October 31 (Sun) –– November 7 (Sun)November 7 (Sun)
@@Osaka International Convention CenterOsaka International Convention Center
Host: Junior Chamber International (JCI)Host: Junior Chamber International (JCI)Sponsor: Daiwa SecuritiesSponsor: Daiwa Securities・・ Running a booth at Running a booth at ‘‘Future ExpoFuture Expo’’, ,
・・ Panelists for sectional meetinganelists for sectional meeting
4. Events for Financial Literacy
©Daiwa Securities Group Inc.15http://www.daiwatv.jp/http://www.daiwatv.jp/
Website Archives
4. Forums for Financial Literacy
©Daiwa Securities Group Inc.16
Daiwa Africa Forum 2010Date: July 21st, 2010
Venue: GranTokyo North Tower 18F Conference Room
Speaker: Mr. Thierry de Longuemar, Vice President Finance, African Development Bank (AfDB)
Mr. Pierre Van Peteghem, Treasurer, AfDB
Dr. Boukary Savadogo, Manager of the Division of Education, Science and Technology, AfDB
Dr. Naoyuki Kawahara, Director, NPO Rocinantes
Ms. Keiko Sano, Director, East Africa Division 2, Africa Department, Japan International Cooperation Agency
Ms. Agnes Chan, the ambassador of the Japan Committee for UNICEF, a pop singer, a television personality
No. of Audience: 221
4. Forum for Financial Literacy
©Daiwa Securities Group Inc.17
Impact Investing Awareness
70
69
33
79
37
56
17
0 20 40 60 80 100
水・衛生
貧困・飢餓
医療・保健
教育
社会基盤整備
気候変動
興味がない
102
83
64
52
11
0 20 40 60 80 100 120
成長性が見込める
社会性を重視した経営姿勢かどうか
利益を上げている
株主への還元
事業規模
89
38
30
0 20 40 60 80 100
双方
投資リターン
社会貢献
97
31
0
0 20 40 60 80 100 120
賛同する
大いに賛同する
賛同しない
■ Which of financial return or social return do you care?
■ Do you support Impact Investment?
■ What social problems are you seriously concerned about?
■ What aspect do you most value when investing?
Yes
Strongly Yes
No
Both
Financial Return
Social return
Water
PovertyHealth
Education
InfrastructureClimate Change
No interest
Revenue growth
Profit
Scale of operation
CSR strategy
Dividend
Source: Questionnaire at Impact Investment Forum 2010, September 9th
©Daiwa Securities Group Inc.18
MDGs & Impact Investment Bonds
Impact Investment Bond
MDGs
Mic
rofin
ance
Educ
atio
nin
Afri
caVa
ccin
eW
ater
Gre
en
Clim
ate Tsun
ami
Reco
nstru
ctio
n Fu
nd
Goal 1: Eradicate extreme poverty & hunger ◎ ◎ ○
○ ◎ ○ ○
◎ ○ ○ ○
◎ ◎
○
◎ ◎
○ ◎ ◎ ◎
○ ○ ○ ○ ○ ○Goal 8: Develop a global partnership for development
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria and other diseases
Goal 7: Ensure environmental sustainability
Goal 1: Eradicate extreme poverty & hunger
Goal 2: Achieve universal primary education
Goal 3: Promote gender equity and empower women
Goal 4: Reduce child mortality rates
©Daiwa Securities Group Inc.19
¥Billion
5. SRI / Impact Investing Bonds
【 Annual Sales Trends】
(十億円)
29.0Microfinance Bonds2010年9月22日
13.9Latin America Child Education Support Bonds
2010年7月15日
11.8Africa Education Bonds2010年8月30日
9.8Ecology Bonds2010年11月12日
8.7Microfinance Bonds2010年6月15日
32.6Ecology Bonds2010年5月21日
60.4Water Bonds2010年4月16日
Sales VolumeName of the ProductsDate of
Issuance
Daiwa69%
Source:Daiwa Securities ※Only for Individual bond (Mar.2008-Mar.2011)
Domestic share of the bonds
Total approx.: ¥482.4 Billion
¥Billion
Impact Investment Bond Sales Volume at Daiwa Securities
Major Impact Investment Bonds
©Daiwa Securities Group Inc.20
Major Characteristics
The first microfinance mutual fund in Japan
Minimum investment unit is 1,031 yen, you can pursue both social and financial return
Direct lending in local currency to MFIs (currency risk free to MFIs)
Daiwa Microfinance Fund
5. SRI / Impact Investing Fund
©Daiwa Securities Group Inc.21
Source: Daiwa Microfinance Fund prospectus
(available only in Japanese)
*Developing World MarketsLoan users
(BOP
)
Taking Currency risk, Interest rate risk and Credit risk Reducing risks by deversifying portfolio
Pursuing financial return as well as social return Daiwa Microfinance Fund
■Investment Universe ■Model Portfolio
Reviewed by DWM*300 MFIs
Over 10,000 MFIs
(E) Return
5. SRI / Impact Investing Fund
©Daiwa Securities Group Inc.22
Conclusion
1. To achieve MDGs, not only public, but also private sector money is necessary.
2. Socially Responsible Investment, especially Impact Investing is required to contribute MDGs.
3. Financial Institutions should implement its mission by leveraging financial capabilities
©Daiwa Securities Group Inc.23
Contact :Corporate Communication Departmente-mail:[email protected]
Tel:03-5555-1312 Fax:03-5555-0662
©Daiwa Securities Group Inc.24
Appendix
©Daiwa Securities Group Inc.25
Our Surrounding Environment
経済(Profit/Governance)
人間社会(People/Society)
地球環境
(Planet/Environment)
企業・団体(Enterprise)
【【PPPPPP】】 【【ESGESG】】
©Daiwa Securities Group Inc.26
Paradigm Shift
Sustainability EraSustainability Era
~20th century
<Unlimited Resource>
21st Century~Low Carbon Community
<Limited Resource>
Materially R
ich
Carbon energy Carbon energy replaced animals and replaced animals and manpowermanpower
New/Renewable Energy Era New/Renewable Energy Era (Solar, wind, gravitational energy, (Solar, wind, gravitational energy, biomass) biomass)
Growth Era
ParadigmParadigmShiftShift
Industrial Industrial RevolutionRevolution
Environment, Resource & Human rights constraint Environment, Resource & Human rights constraint
©Daiwa Securities Group Inc.27
Guidance on Social Responsibility, provides harmonized, globally relevant guidance for private and public sector organizations of all types based on international consensus among expert representatives of the main stakeholder groups,.
What will ISO 26000 achieve? It will integrate international expertise on social responsibility –will be a powerful SR tool to assist organizations to move from good intentions to good actions.
Source: ISO Web site . Japan Business Federation Political Sociology Division 2010.6.10「Summary of Result of Copenhagen Conference ISO260000」
ISO 26000 (Publish in Nov. 2010)
1. Accountability 2. Transparency 3. Ethical behavior 4. Respect the interest of stakeholders 5. Respect the rule of law6. Respect the international code of
conduct7. Respect the human rights
7 Code of Conducts
1. Administration of the organization2. Human rights3. Labor practice4. Environment 5. Fair business practice6. Consumer issues7. Community participation and
development
7 Core Subjects
From CSR to SR
©Daiwa Securities Group Inc.28
MFI Interest Yield to borrowers
35.1
28
44.3
25.5
34.536
26.128.2
23.9
32.6
20.9
31.7
24.826.2
0
5
10
15
20
25
30
35
40
45
50
World Africa EAP ECA LAC MENA SouthAsia
% o
f G
ross
Loan
Port
folio
2003
2006
Saurce: OCCASIONAL PAPER No. 15 , February 2009 The New Moneylenders: Are the Poor Being Exploited by High Microcredit Interest Rates?Note: Total Interest and Fee Income/Average Total GLP: average of 175 sustainable MIX MFIs, weighted by loan portfolio.
©Daiwa Securities Group Inc.29
Myth of Microfinance
Myth Fact
1 Poor people do not repay a loan.Customer continue to repay as long as they value theservice. The greatest incentive for the poor to repay theloan is to access to repeat loans.
2Poor people can not pay the interest ratesnecessary to cover the costs to delivering theservice. Poor can not pay the price.
The poor willing to pay the cost for quality services.For the poor, access to the financial service is moreimportant than the price.
3 Credit for consumption purposes should neverbe provided.
Economic shock is frequent and diverse for the poor.They should prevent selling income generating assets tocoop with these risks by microfinance
4 Microfinance creates economic opportunity. The borrower or user of MF create opportunity. Onlypeople with economic opportunity can benefit from credit.
5 Poor can not save the money. Poor people do saving. Saving is more important thanborrowing for the very poor to manage their future.
6 MFI can reach to the very poorest of the poorthrough credit.
Debt financing is not a good development tool for thedestitute.
7 MFI is donor dependent institutions.There are over 600 Financially self sufficient (FSS) MFIs.FSS is necessary for an MFI to reach large numbers ofpeople
Source: Microfinance Distance Learning Course (UNCDF)
©Daiwa Securities Group Inc.30
Impact Investment Bond UridashiYear Name Issuer Lead Manager Tenor Settlement Date in Japan Amount ($mil)
Vaccine Bonds IFFIm Daiwa 2y 19-Mar-08 $211World CO2LTM Bonds World Bank Daiwa 5y3m 27-Jun-08 $25
Vaccine Bonds IFFIm Daiwa 3y 20-Feb-09 $437Vaccine Bonds IFFIm Mitsubishi UFJ 3y 28-May-09 $144Vaccine Bonds IFFIm HSBC 4y 25-Jun-09 $132
Microfinance Bonds IFC Daiwa 3y 20-Nov-09 $275Green Bonds World Bank Daiwa 5y 03-Feb-10 $106
Environmental Support Bonds NIB Nomura 3y 03-Feb-10 $207Climate Awareness Bonds EIB HSBC 5y 16-Mar-10 $200
Vaccine Bonds IFFIm Daiwa 3y 24-Mar-10 $338Clean Energy Bonds AfDB Mizuho 4y 30-Mar-10 $78
Water Bond ADB Daiwa 3y 16-Apr-10 $645Climate Awareness Bonds EIB Daiwa 3y 21-May-10 $368
Clean Energy Bonds AfDB Mizuho 3y6m 28-May-10 $108Green Bonds Kommunalbanken Norway Nikko 3y 28-May-10 $102Green Bonds World Bank SBI 5y 09-Jun-10 $6
Microfinance Bonds EBRD Daiwa 3y 15-Jun-10 $96Green Bonds Kommunalbanken Norway Nikko 3y 29-Jun-10 $47
Vaccine Bonds IFFIm HSBC 10y 29-Jun-10 $102Poverty Reduction Bonds IADB Daiwa 4y 15-Jul-10 $158
Clean Energy Bonds AfDB HSBC 7y 29-Jul-10 $13Green Bonds AfDB Nikko 3y 27-Aug-10 $30
Education Bonds AfDB Daiwa 3y 30-Aug-10 $136Microfinance Bonds IFC Daiwa 3y 22-Sep-10 $342Clean Energy Bonds AfDB HSBC 4y 30-Sep-10 $237Clean Energy Bonds AfDB HSBC 6y 29-Oct-10 $13Clean Energy Bonds AfDB Mizuho 4y 29-Oct-10 $123
Climate Awareness Bonds EIB Daiwa 3y 12-Nov-10 $118Poverty Reduction Bonds IADB Daiwa 3y 02-Feb-11 $239
Green IFC Bonds IFC Nomura 3y 25-Feb-11 $44Clean Energy Bonds Kommunalbanken Norway HSBC 4y 29-Mar-11 $83
Vaccine Bonds IFFIm Daiwa 3y 31-Mar-11 $228
2010
2011
2008
2009
Total $5,338 mil / Daiwa’s arrangements $ 3,721 / Daiwa’s market share 69%
©Daiwa Securities Group Inc.31
Impact investment bond Private Placement to Regional Banks
DaiwaOgaki Kyoritsu Bank$10mil5 yearUSDGreen BondWorld Bank6/14/2011
DaiwaMusashino Bank$10mil5 yearUSDGreen BondWorld Bank4/14/2011
DaiwaOita bank$10mil5 yearUSDGreen BondWorld Bank3/17/2011
DaiwaHokuyo Bank$10mil5 yearUSDGreen BondWorld Bank2/18/2011
DaiwaNanto Bank$20mil5 yearUSDGreen BondWorld Bank2/24/2011
DaiwaKagoshima Bank$10mil5 yearUSDWater BondAsian Development Bank6/30/2011
JP MorganSan-in Godo Bank$30mil5 yearUSDGreen BondWorld Bank2/17/2011
DaiwaPublic company$12mil5 yearUSDEducation BondAfrican Development Bank8/19/2010
DaiwaNishi-Nippon City Bank$30mil5 yearUSDWater BondAsian Development
Bank1/25/2011
5.25 year
5 year
5 year
10 year
5 year
5 year
5 year
5 year
TermTerm
JP MorganAichi Bank$30milUSDGreen BondWorld Bank1/25/2011
DaiwaDaishi Bank$10milUSDGreen BondWorld Bank1/20/2011
DaiwaFukui Bank$10milUSDGreen BondWorld Bank1/20/2011
DaiwaKagawa Bank$5milUSDGreen BondWorld Bank1/18/2011
DaiwaKiyo Bank$10milUSDGreen BondWorld Bank12/21/2010
DaiwaIwate bank$10milUSDGreen BondWorld Bank11/30/2010
JP MorganSan-in Godo BankA$30milAUDGreen BondWorld Bank11/16/2010
JP MorganIyo Bank$50milUSDGreen BondWorld Bank9/1/2010
Lead managerLead managerinvestorinvestorAmountAmountCurrencyCurrencyProductProductIssuerIssuerIssue dateIssue date
©Daiwa Securities Group Inc.32
Issuer: IFFImPurpose: Raise funds in the capital markets to accelerate funding available for health and immunization
programmes in 70 of the developing countries around the world.
Issue date and amount:Mar. 19, 2008 $211 million equivalentFeb. 20, 2009 $437 million equivalentMar. 24, 2010 $338 million equivalent
Highlights of “Impact Investment Bonds”Vaccine Bonds
Issuer: IFCPurpose: Support microfinance businesses with the purpose
of fostering economic independence by providing small scale financial services to the poor segments.
Issue date and amount:Nov. 20, 2009 $275 million equivalentSep. 22, 2010 $342 million equivalent
Microfinance Bonds
Issuer: IBRD
Purpose: Support projects in the World Bank’s member countries that meet specific criteria for low-carbon project.
Issue date: February 3, 2010Issue amount: $106 million equivalent
Green Bonds
Issuer: ADB
Purpose: Support water project by developing countries inAsia and the Pacific.
Issue date: April 16, 2010 Issue amount: $628 million equivalent
Water Bonds
InvestorsInvestment
in capital market
Financial management
Funding
Support for vaccine securing program
DonatorDonation for up to
20 years
Daiwa Securities joined the panel with GAVI on the 8th plenary session of the Leading Group on Innovative Financing for Development (16-17 Dec 2010, Tokyo)
©Daiwa Securities Group Inc.33
Issuer: EIB
Purpose: Support future lending projects in renewable energy and energy efficiency, both of which
are identified by EIB as key areas for mitigating the effects of climate change.
Issue date and amount:
May. 21, 2010 $393 million equivalentNov. 12, 2010 $118 million equivalent
Climate Awareness Bonds
Microfinance Bonds Education Bonds
Issuer: EBRD
Purpose: Support micro and small enterprises, which are
not catered for by the formal financial sector, with sustainable access to financial services, via a range of financial institutions.
Issue date: June 15, 2010 Issue amount: $96 million equivalent
Issuer: AfDB
Purpose: Finance projects in the field of education and hence foster economic and social growth in African countries.
Issue date: August 30, 2010 Issue amount: $137 million equivalent
Poverty Reduction Bonds
Issuer: IADB
Purpose: Support innovative poverty alleviation programs
in Latin America and the Caribbean, including several conditional cash transfer programs,
such as Oportunidades in Mexico.
Issue date: July 15, 2010 Issue amount: $158 million equivalent
Highlights of “Impact Investment Bonds”
©Daiwa Securities Group Inc.34
Foreign Equities Focus on theenvironmental technology of each
nationCreator:Russell Investment
Formulated:May 1st, 2008(Unlimited term)
As of April 28th, 2011
Basic price:8,560円 Total net asset:143億円
●●Daiwa Eco FundDaiwa Eco Fund●●Daiwa SRI FundDaiwa SRI Fund
SRI product: Mutual funds
●●Environmental Business Fund for Environmental Business Fund for Next Generation Next Generation
Domestic EquitiesEconomy & Ecology
Creator:Daiwa SB Investment
Formulated:Feb. 27th, 2009
(Redemption date:Feb. 26th, 2014)
As of April 28th, 2011
Basic price:9,840円Total net asset:10.13億円
Domestic Equities
Economy & Ecology
Creator:Daiwa Asset Management
Formulated:March 9th, 2006
(Redemption date:Feb. 22nd, 2016)
As of April 28th, 2011
Basic price:4,814円Total net asset:89.20億円
●●Russell World Environment Russell World Environment
Technology FundTechnology Fund
●●Daiwa Energy Technology FundDaiwa Energy Technology Fund
Domestic Equities
Focus on alternative energy which
global demand is estimated to increase
Creator:Daiwa Asset Management
Formulated:Dec. 25th, 2008
(Redemption date:Jan. 14th, 2014)
As of April 28th, 2011
Basic price:10,127円Total net asset:38.92億円
Domestic Equities
Focus on integrity & transparency of the enterprise
Creator:Daiwa Asset Management
Formulated:May 20th, 2004
(Redemption date:May 9th, 2014)
As of April 28th, 2011
Basic price:6,837円Total net asset:24.73億円
SRI Funds distributed by
Daiwa SecuritiesTotal net asset of 15 products¥92.8Billion
©Daiwa Securities Group Inc.35
Social Engagement
■Participating in the international initiatives GC (UN Global Compact)PRI (Principle for Responsible Investment)UNEP FI (UNEP Finance Initiative)CDP (Carbon Disclosure Project)
■Cooperation with the international organization/NGOGRI (Global Reporting Initiative Japanese Edition)FTSE4Good (Policy Committee Member of the SRI Index)SIF-J(Board Member of Social Investment Forum Japan)
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■Real business as a result of partnership with NPO・NGO
2)Daiwa SRI Fund Grant Program (Civil Society Initiative Fund)
In order to strengthen the basis of domestic NGOs operating in the field of human security, we support them for personnel expenditure (instead of program cost) aiming at nurturing leaders for the core of the organization. The operation is taken from the outstanding balanceof donation of Daiwa SRI Fund & Daiwa Eco Fund. Since 2006, there have been 24 cases in total with more than 42 million yen of support.
1)Social Business College(Kopernik)
This is a lecture by social entrepreneur for social business practice, held bimonthly since Oct. 2010 (12 lectures in 2 years), for the university students and working persons. The operation is funded by the outstanding balance of donation of Daiwa Eco Fund and contents can be found in the web.
3)Daiwa Securities Group – Tsunami Reconstruction Fund(Asia Community Center 21)
From 2005 (after receiving appeal from the UN), for the next 10 years, we provide support of 10 million yen every year for reconstruction assistance NGOs in devastated areas (India, Sri Lanka, Indonesia) and is used as a source for microfinance and many more.
In the brackets are the name of NGO/NPO
Corporate Citizenship