SPTF annual meeting, the 2 nd of June Madrid 1 SPTF Rating Initiative Update as of May 22nd 2009

Maintsream social performance Creating the synergies and building on: CGAP former Rating Fund SPI identified by SPTF and SPS of Mix Market SPI audit tools CGAP social rating pilots with 4 raters : M.Cril, Microrate, Microfinanza Rating and Planet Rating  Rating Initiative managed by ADA started in Sept 2008 supported by Luxembourg Cooperation, SDC, MIL, Oxfam Novib, SPTF, BlueOrchard and ResponsAbility.

Objectives and targets Promote a viable microfinance rating market by co- funding:  Financial rating (and mini assessment)  Social ratings (standard and SR with client survey)  later, an Integrated rating Give transparent information for MFIs, funders and stakeholders:  With quality control (role of the Advisory Board chaired by Laura Foose, SPTF)  Awaireness building campaign Give information on microfinance rating market:  Annual Rating Market Outlook Report

Co-funding of ratings Total number of ratings approved as of May 22 nd 2009 Since Sept Total 1) Performance Rating First Second819 2) Mini Assessment639 3) Social Rating84351 Total (1+2+3) Combined (financial and social) / Nbr. of MFIs 63036

Distribution of products In 2008, financial ratings (peformance and mini ratings) approved or disbursed were considerably higher than social ratings. In 2009, social ratings are almost 3 times more frequent than financial ratings and 71% of these social ratings are combined with financial ratings.

Regions Regions Since Sept 2008 Approved Financial rating Africa24 EECA11 Asia10 Social rating Africa12 ME1 EECA2 Asia5 LAC31 Total96

Geographical distribution For financial ratings, the Initiative approved the majority of co-funded ratings in Africa (52%). For social ratings, the Initiative approved 61% of co-funded ratings in LAC and 23% in Africa.

Awareness raising activities These activities included:  World Microfinance Forum Geneva, October 2008  Awareness raising workshop and AMT investment fair, Dakar, October 2008  Regional Workshop for MF associations Ethiopia, May Type of activityAmountTarget audience International conferences 3Investors, development agencies and some MFIs Workshops2MFIs from several regions Promotional mailings 6Around 2000 stakeholders (MFIs, investors and developmentt agencies)

Market information Elaboration of the Microfinance Rating Outlook Report 2008 Dissemination of the report (750 documents distributed and 2000 copies sent by to stakeholders) Start of collection process of MFI feedback

Management of the Initiative Communication :  Initiative is temporary on ADA’s website (MFI transparency):  Own website should be operational by Sept 2009:

Financial Situation The need of funding for the whole duration of the Initiative is approximately €1,667,470, which represents 49% of the total budget. Funding sourcesAmount Total resources1,797,500 Total budget3,464,970 Need of funding1,667,470

Considering : The high demand for financial ratings and the even greater demand for social ratings, The strong results of the Rating Initiative with the approval of 96 ratings in 9 months, We invite any funder that believes that financial and social transparency is a relevant issue, To join the Rating Initiative.

Please talk to the following participants in the SPTF annual meeting: David Quien, Manager of the Rating Initiative Benjamin Mackay, Programme Assistant Phone: Or any one of the following Steering Committee members: Daniel Feypel, Luxembourg Development Cooperation Hans Ramm, Swiss Development Cooperation Pius Frick, The Microfinance Initiative Liechtenstein Bruno Molijn, Oxfam-Novib Laura Foose, SPTF

THANK YOU ! THANK YOU !