Voncert

MDLF has teamed up with Swiss private bank Vontobel Group and social investment specialists responsAbility to create "Voncert responsAbility Media Development" (Voncert), a financial product that combines a fixed-interest investment with an investment in independent news media through MDLF.

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?
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 2008", 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 about 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 low-cost 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 12 years, MDLF has helped almost 70 independent media companies in 23 countries finance scores of projects. It has provided more than $74 million in low-cost financing, collecting more than $8.8 million in interest and dividends. MDLF has written off as losses less than 2.2% 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.

As at December 31, 2005, the Group reported CHF 57.6 bn of client assets and managed CHF 31.3 billion of custody assets. It employs 917 staff worldwide. 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?
responsAbility is a Zurich-based social investment services provider specialising in developing countries. The outcome of a private initiative begun in 2003, responsAbility is backed by its founding institutions and/or shareholders, including representatives of the Swiss financial market (Baumann & Cie., Credit Suisse, the Raiffeisen Group, Swiss Re and the Vontobel Group) in addition to Andromeda Fund and George Avenue, social venture capital funds. The Swiss Agency for Development and Cooperation and the Swiss State Secretariat for Economic Affairs support responsAbility in addressing issues relating to development policy.

How does Voncert work?
Voncert combines a loan to MDLF at an interest rate of 1% per year (20% of the investment amount) with an investment in Vontobel Swap Note Open End on the five-year Return Swap Index, a structured interest rate product that replicates a bond investment at a constant interest rate with a five-year term to maturity (80%). The result for the investor is a simple bond-like product that includes a substantial social component.

Rates and terms
20% of the investment is loaned to MDLF at an annual interest rate of 1%. The return on the remaining 80% is interest rate dependent and will fluctuate, reflecting the market return of a 5-year Swiss franc bond. The term is 5 years. For further information, please see the term sheet.

Who can invest in Voncert?
Anyone who is not a resident of the USA, United Kingdom or Cayman Islands can invest in Voncert.

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 by clicking here.

Anyone may make a donation at any time by clicking here.

How do I invest?
1. Read the term sheet.
2. Either print the term sheet or note the product number.
3. Give your bank the term sheet/product number and instruct it to make the investment (minimum investment is CHF100).
4. If your bank is unable to make the investment with the information you have given it, ask it to call Vontobel Group direct on +41 58 283 7898, who will be pleased to help.

Please note, residents of the USA, United Kingdom and Cayman Islands are not able to invest in this product.

Is my investment safe?
Thanks to pioneering cooperation with the Swiss Agency for Development and Cooperation (SDC), Bank Vontobel guarantees product tradability at all times and capital protection on expiration.

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