responsAbility Press Freedom VONCERT

MDLF has teamed up with Swiss private bank Vontobel Group and responsAbility Social Investments AG to create "responsAbility Press Freedom VONCERT", a bond-like certificate enabling social investors to invest directly in MDLF’s work.

Read the Termsheet here.

Why should I invest in press freedom?
What is MDLF?
What is the Vontobel Group?
What is responsAbility?
How does Voncert work?
Rates and terms
Who can invest in Voncert?
How do I invest?
Is my investment safe?
Who administers Voncert?

Why should I invest in press freedom?
More than 80% of people live in countries in which the press is not free ("Freedom of the Press 2010", Freedom House). Access to objective, current information is essential if people are to have the possibility of reaching their own decisions on political, economic and social matters, and have a say in shaping the future of their country. However, more than three-quarters of the world's population, in other words more than 5 billion people, cannot rely on independent reporting in their media. They only learn what their governments and their friends want them to know.

A crucial element for investors is the relationship between information and economic growth. A major World Bank study points out how extremely important reliable, current and independent information is for making good economic decisions. It also establishes that there is a significant positive correlation between high media transparency and good governance. Read more of the case for investing in Voncert here.

What is MDLF?
Media Development Loan Fund is a mission-driven investment fund for independent news outlets in countries with a history of media oppression. We provide affrodable capital, solutions and know-how to help journalists in challenging environments build sustainable businesses around professional, responsible, quality journalism. Working in Africa, Asia, Latin America, Southeast Europe and the CIS, we help essential independent news providers to expand their audience, improve their news products and become financially self-sustainable.

In the past 15 years, MDLF has helped almost 80 independent media companies in 26 countries finance scores of projects. It has provided more than $106 million in low-cost financing, earning more than $35.7 million in interest, dividends and capital gains, and returning more than $10 million to investors. MDLF has written off as losses only 2% of the total loaned.

What is the Vontobel Group?
Founded in 1924, the Vontobel Group is an internationally-oriented Swiss private bank and is headquartered in Zurich. Vontobel specialises in asset management for sophisticated private and institutional clients, as well as partners. It serves its clients via three business units: Private Banking, Investment Banking and Asset Management & Investment Funds. Vontobel Group is a leading player in derivative and structured products in Switzerland and has a proven history in packaging clients needs in investable securities.

Vontobel's registered shares (VONN) are listed in Switzerland on the SWX Swiss Exchange. The Vontobel family and the Vontobel Foundation hold the majority of shares and votes in the company.

What is responsAbility?
Founded in 2003, responsAbility Social Investments AG is one of the world's leading asset managers for social investments. It specialises in sectors such as microfinance, SME financing, fair trade and independent media. With its products, responsAbility enables people in developing countries and emerging markets to access markets, information and other services crucial for their development. Private and institutional investors can thus professionally contribute to positive social development while at the same time achieving a financial return.

responsAbility is backed by well-established Swiss financial institutions and a social venture capital company. Its founders and shareholders include Baumann & Cie., Credit Suisse AG, Raiffeisen Schweiz Genossenschaft, Schweizerische Rückversicherungs-Gesellschaft AG, Bank Vontobel AG as well as George Avenue C. V. responsAbility currently manages USD 870 million invested in 328 institutions and in 60 countries (as per 31.10.2010).

How does Voncert work?
The VONCERT is a bond-like certificate enabling social investors to invest directly in MDLF’s work providing affordable debt and equity financing to independent news businesses in countries with a history of media oppression. It provides a 5-year loan to MDLF. In an innovative public-private partnership, the Swiss Agency for Development Cooperation provided a partial guarantee for the VONCERT, which will raise CHF2.2 million of investment capital for MDLF.

Rates and terms
The VONCERT pays a return of 1.5% annually to investors. The term is 5 years. For further information, please see the Termsheet.

Who can invest in Voncert?
The VONCERT is not available to residents of the USA, UK, EEA and DIFC Dubai (UAE)

If you are a U.S. resident who would like to invest in press freedom, you might like to find out more about MDLF's Free Press Investment Notes here.

Anyone may make a direct loan to MDLF. Find out more about possible terms here.

How do I invest?
The Voncert was sold out within two days of its issuance on 3 May 2011.

However, from the closure of the issuance period on 17 May 2011, investors should be able to buy the product in secondary markets. They or their banker should contact Bank Vontobel (see the Termsheet) and indicate their interest. Bank Vontobel will contact existing investors who may be willing to sell their VONCERTs.

Is my investment safe?
Thanks to a pioneering public-private partnership, the Swiss Agency for Development and Cooperation (SDC) partially guarantees this investment.

Who administers Voncert?
All administration of Voncert is carried out by the Vontobel Group.