Finnfund

IFC, ABN AMRO, ShoreBank Corporation, Netherlands Development Finance Corporation (FMO), the Ford Foundation, the Belgian Investment Company for Developing Countries (BIO) and Finnfund signed a Joint Memorandum of Agreement in Brussels on 10 July 2003 announcing their intentions to invest in the new company, the ShoreCap International. From the investors, ShoreCap has received expressions of interest totaling USD 15.5 million.

The ShoreCap will invest in microfinance institutions in Asia, Africa and Eastern Europe. The company will be established during the third quarter of 2003.

In collaboration with a group of investors including private and non-profit entities, ShoreBank Corporation will establish ShoreCap International, a USD 25 million company that will invest capital in and advise local regulated financial institutions that make small and microbusiness loans in developing and transitional economies.

The lead sponsor is ShoreBank Corporation, a for-profit community development and environmental bank holding company with USD 1.4 billion assets that is headquartered in Chicago. ShoreBank Corporation has a long track record of helping revitalize economically disadvantaged areas in the United States and successfully transferring that experience to partner institutions in the developing world.

“ShoreCap is being created to help local financial institutions reach businesses in underinvested areas that are too small or too new to interest conventional banks”, says Mary Houghton, President of ShoreBank Corporation and Chairman of ShoreCap International.

One of ShoreBank Corporation’s hallmarks is its collaboration with other financial institutions and community development, environmental and non-profit partners. The creation of ShoreCap International builds on years of previous work with many of the intended investors.

“For several years, IFC has successfully worked with ShoreBank on a project-by-project basis in a wide range of countries”, says IFC Executive Vice President Peter Woicke.

“ABN AMRO is very pleased with the envisaged establishment of ShoreCap”, explains Paul Mudde, ABN AMRO Head of Reputation Management & Sustainable Development.

“Our strategic alliance with ShoreBank, IFC and other investors will create a strong and dedicated platform to share knowledge and expertise in the area of micro and small business lending.” Jim Wolfensohn, President of the World Bank, says: “The World Bank is pleased to be a founding shareholder. When I first learned what ShoreBank has done in disinvested communities in the U.S. and in advisory work abroad, I told them that these kinds of banks are needed in the countries in the World Bank serves.”

More information at Finnfund, Ms Sari Nikka, tel +358 9 3484 3304, email firstname.lastname@finnfund.fi