2. LIP is a part-time organization
Representative Director Taejun Shin
Project Manager Akiko Sugiyama
Number of directors 7
Number of part-time workers 50+
Number of supporters 800+
Email transaction / day (incl. weekend) 100+
Range of working hours / day (incl. weekend) 0 – 20
Main office location Cloud
Cups of coffee I have had since establishment 5,000+
4. Components of DD Process*
• Strategy
• Management Capability
Management Quality • Information Management System
• HR / Governance
• Portfolio Quality
• Operation Sustainability
Financial Performance • Balance-sheet Quality
• Cash Flow Stability
• Macro-economic Performance
• Political Stability
Country Performance • Quality of MFI Regulation
• MFI Competitive Situation
• Operating Area
• Borrower Type
Social Performance • Contents of Service
• Social Responsibility
*Self-audit will be conducted separately
5. Term proposal
1st financing Oct 2010, USD 100,000
2nd financing* Dec 2010, USD 100,000
3rd financing* Mar 2011, USD 100,000
Investment currency USD
Type of financing Preference Share (No voting right)
Expected return Floating **
Maturity 2011 December
Extension / Refinancing option Yes
Maximum Maturity 2013 December
*Contingent upon PAR test, i.e. when PAR level ameliorated to certain level, second
financing is conducted
** See next page
6. Investment Return Calculation
Type Profit Driven*
Profit calculation base Net income of Chamkar Leu 2009
Investment return Base return + Floating Return
Base Return 6.00% per year
1.0% (if positive growth) * profit growth
Floating return
3.0%( if negative growth) * profit growth**
*Due to Japan’s security investment regulation, the financing should be profit-driven, i.e.
the investment return is related to accounting profit
** Profit growth = Chamkar Leu net income of the year / net income of year 2009
8. Schedule
Until June 2010 Dud diligence conducted, agreement on MOU
Until early July 2010 Investment committee approval
Until late July or early Aug 2010 Documentation
From Aug 2010 Initiate fund-raising
