Shared Interest

The organization had outstanding agreements guaranteeing commercial loans to small and growing businesses, agricultural enterprises and micro-finance institutions in the southern africa region. The aggregate exposure involved in the guarantees totaled $3,485,000. Because the credit facilities arranged by Shared Interest were limited to no morethan 75% of the loans they backed, the guarantees ultimately unlocked total lending of sums in excess of the stated amount by virtue of the risk-sharing agreed in the contracts between local institutions and the organizations. Additionally, the guarantee program, implemented by means of the proven trans-border mechanism of standby bank letters of credit, continued to give the confidence to southern african non-bank financials institutions and other alternative lenders to put capital at risk in the sphere of small business finance and lending to economically-disenfranchised individuals. Collateralizing the letters of credit, were the us-custodied investments of the organization, funded by loans and donations by american individuals, family foundations, faith-based institutions. Healthcare systems and other investors accepting concessionary financial returns in exchange for the social impact that the organization helps to create.