The Eye Fund

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The Eye Fund

• Presented To WCRE 2007

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Global Blindness and Economic Gain

• Without extra interventions, the global
  number of blind individuals would increase from
  37M in the year 2000 to 76M in 2020.
• A successful VISION 2020 initiative would
  result in only 24M blind in 2020 and lead to 429M
  blind person-years avoided.
• A conservative estimate of the economic gain is
  102B.
• The Magnitude and Cost of Global Blindness An
  Increasing Problem That Can Be Alleviated, Kevin
  Frick PhD, Allen Foster, FRCS, FRCO

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Eye Fund Overview

• A social venture fund combining innovative
  financing with sustainability planning and
  training resulting in sustainable high quality
  eye services for all economic strata, rich and
  poor alike.
• Addresses two primary constraints capacity
  building and financing
• Will deliver financial and social returns
• Social objective reduce blindness and ameliorate
  visual disability in equitable fashion
• Three components
• Eye Fund 1
• Eye Fund 2
• IAPB Capacity Building Grant Fund

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Debt as an Engine for Growth for Eye Hospitals

• Debt financing diversifies the number of funding
  channels available to eye care programs
• Debt facilitates the integration of financial
  institutions, socially-motivated investors, and
  the social sector
• Debt can help Eye Hospitals leverage resources,
  achieve economies of scale, and increase the
  number of poor people served
• Debt opens new channels for funding through large
  commercial companies related to eye care and
  socially motivated investors
• Grant capital used as a catalyst can leverage
  investments from socially motivated investors at
  reasonable terms.
• Increased freedom and financial flexibility to
  plan, grow, and allocate unrestricted grants

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Three Forces Driving This Opportunity
1. Global Demand for Affordable, High-Quality Eye
Care

• Globally there are approximately 37 million
  blind, and 150 million with serious visual
  impairment
• Grant financing not commensurate with need
  collective annual spending roughly 250 million
  growth is slow

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Collaborative Partnership

• Deutsche Bank
• Leading global financial institution, positioned
  on the forefront of social investing with the
  dual objective of profitability and social return
• Manages over 425 MM of socially motivated
  financing, with loans to and investments in more
  than 110 organizations in over 30 countries
• International Agency for the Prevention of
  Blindness
• Coordinating, umbrella organization leading an
  international effort to mobilize resources for
  blindness prevention activities.
• Network of professional bodies, non-governmental
  organisations (NGOs), educational institutions
  and interested individuals with the focus to
  develop and implement programs for the prevention
  of blindness.
• Ashoka Innovators for the Public
• The global association of the worlds leading
  social entrepreneurs
• Over 1800 fellows in more than 60 countries
• Eye Fund initiator and provider of financial and
  human resources via grant from Robert Wood
  Johnson Foundation

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Structural Overview

• Oversight Structure
• Deutsche Bank Advisory and Investment Committees
  of financial industry and charity experts
• IAPB Capacity Building Grant Committee

• Uses of Financing
• Capital investments for equipment or buildings
• Program expansion
• Bridge Financing
• Replication of program in new region

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Major Milestones To-Date

• Established partnership among three leading
  entities (MOU)
• 2006 Clinton Global Initiative Commitment
• Identified investment of 11 loan candidates
• Presently loan applications are being received
  and reviewed
• Financial model developed
• Lavelle Fund has committed 250,000 to IAPB
  capacity building grant fund another 200,000 is
  pending from a private donor
• Oversight committees are being established
• Deutsche Bank Investment Advisory Committee
• IAPB Capacity Building Grant Committee
• Online survey for Eye Fund II candidate screening
  methodology approaching official launch

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Eye Fund I Potential Loan Recipients

• Sankara Nethralaya (Chennai, India)
• He Eye Hospital (Shenyang, China)
• Chitagong eye hospital (Dhaka, Bangladesh)
• Shroff Charity Eye Hospital (New Delhi, India)
• Grameen Bank (Dhaka, Bangladesh)
• Al Noor Foundation/Magrabi (Cairo, Egypt)
• LV Prasad (India)
• Fundacion Vision (Paraguay)
• Eye Foundation Hospital (Nigeria)
• ICEE- International Center for Eye Care Education
  (S Africa
• Australia Sydney)
• Operation Eyesight Universal (Calgary, Canada)

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Details and Terms Eye Fund I II
11 organizations are in final stage of
completing the Eye Fund application, 34 M total
are in demand, some attrition is expected.
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Capacity Building Grant Fund

• Matching grant fund for
• Grants to loan investments for training to boost
  volume, quality and sustainability
• Support to strengthen capacity building training
  institutions
• Grants to programs not ready for debt financing
• Help programs become candidates for loan
  financing by making them self financing from user
  fees
• Grants for training, research, programs in
  demographically challenged where self financing
  is not an option
• Lavelle contribution of 250,000
• Grow to 2M

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Role of IAPB

• Utilize network to discover, aggregate and
  pre-qualify an investing pool
• Advisory Group to give guidance to Deutsche Bank
  for vetting and monitoring of investments
• Capacity Building Committee as decision-maker
  regarding dispensing capacity building grants to
  loan fund investments and others

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Role of IAPB Capacity Building Grant Committee

• Create grant making criteria
• Review and select grant recipients
• Coordinate with Deutsche Bank, IAPB membership,
  investments and capacity building organizations.
• Monitor results of capacity building grants, via
  its network of members and associated capacity
  building organizations

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Role of Deutsche Bank Advisory Group

• Interact with fund manager (Deutsche Bank) to
  provide advice on
• Vetting investments
• Monitoring investments
• Organizing technical assistance, training and
  business planning for investments
• Liaise with IAPB capacity building grant
  committee
• Members will have broad knowledge of eye care
  field and understand principles leading to
  sustainable, high quality, high volume eye care
  development

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Implementation and Timeline 2007
Finalize Prospectus
Raise 7.4 MM PRI
Raise 1.75 MM Grants
EYE FUND I CLOSE
Survey Beta Test (EFII)
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Thank You QA
David Green dgreen888_at_earthlink.net 1 (443)
253-7821
Christian Garms Christian.Garms_at_cbm-i.org 49
(6)251 2153
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Summary of Eye Fund I Pipeline

• Sankara Nethralaya
• (Chennai, India)
• He Eye Hospital
• (Shenyang, China)
• Chittagong Eye Hospital
• (Dhaka, Bangladesh)
• Shroff Charity Eye Hospital
• (New Delhi, India)
• Grameen Bank

• Loan volume 2.7 M
• Investment to be used to build research institute
  and increase direct service delivery
• Total number of patients treated in 2006 was
  421,226. 36 of total surgeries were provided to
  poor patients for free.
• Loan volume 3 M
• Investment is to be used to quadruple the number
  of surgeries performed
• Total number of patients treated in 2006 was
  104,002. 11,698 patients received free/below cost
  outpatient service in 2006, which is 22 of the
  total outpatient service provided that year.
  3,466 poor patients received free/below cost
  surgeries in 2006, which is 42 of total
  surgeries provided that year.
• Loan volume 6 M
• Investment goods to be financed full-service
  general hospital with sub-specialties including
  ophthalmology.
• Chittagong is largest eye hospital in Bangladesh,
  providing a high percentage of surgery at no
  charge
• Loan volume 0.25 M
• Investment is to be used for the hospitals rural
  expansion and training
• More than 50 of patients receive free care and
  surgery
• Loan volume 1 M
• Investment to be financed establishment of 5 eye
  hospitals in Bangladesh which will be self
  financing while providing a high degree of
  service to lower income people at no charge or
  below cost

Note All 11 applicants have 3 year financial
statements available, audited by eternal
financial auditors.
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Eye Fund II Highlights

• Eye Fund II to commence once Eye Fund 1 is
  certain
• Broader scope to include smaller investments
  (below 250,000)
• Enable new financial intermediaries (IAPB and
  its larger members) to aggregate smaller
  financing needs
• Online survey tool combined with business
  algorithms to identify, segment and pre-qualify
  potential investments (Database of 12,000 eye
  care providers)
• Online education and tools for sustainable
  organizational development and financing
• Possibility of government and development
  agencies for guarantees

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Changing the Competitive Landscape

• IAPB to own investing pool backed by government
  guarantees.
• This enables IAPB to put its investing pool out
  for competitive bid. Financial institutions will
  compete to be the fund manager for this pool of
  investment because
• IAPB will have reduced the cost of due diligence
  by aggregating and pre-qualifying a sizable
  investing pool attractive to financial
  institutions
• Secured government guarantees which will enable
  fund managers to more easily sell a fund with a
  higher credit rating