Overseas Private Investment Corporation
An Agency of the U.S. Government
Introduction to OPIC
• U.S. Government’s Development Finance Institution established in 1971
• OUR MISSION: Facilitate and support U.S. private investment in developing countries
and emerging markets.
•Catalyzes sustainable economic development in foreign markets, often supporting a
foreign policy initiative
•Helps U.S. companies enter, grow, and compete in the global marketplace
•By supporting investments, generates U.S. exports and U.S. jobs – National Export
Initiative
• WHAT WE OFFER: A suite of financial products that help U.S. companies enter
international markets where private capital may be limited or unavailable.
• HOW WE RAISE THE BAR: U.S. best practices for environmental safeguards and
worker/human rights.
• HOW WE’RE FUNDED: OPIC operates at no net cost to U.S. taxpayers and has made a
profit consecutively for 34 years, including $269 million for the 2011 fiscal year.
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Where We Work - 150+ Countries
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OPIC Products
• Long-term Financing
Provides loans and loan guaranties to overseas
business ventures with U.S. participation
• Political Risk Insurance
Protects investors against political risks that
their assets may face when deployed overseas
• Investment Funds
Supports privately-owned, privately-managed
funds that make equity investments in overseas
companies
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Financing Scenarios
Scenario One: I am a U.S. company exporting frozen food
products to West Africa. I need to build a cold storage facility in
the region to maintain overseas inventory and grow my regional
distribution network. I am seeking a long-term loan to be
secured by the overseas collateral, but my bank can’t help me.
Where can I find an overseas project finance loan?
Scenario Two: I am a housing developer who has won a contract
with the Ministry of Housing in a Central American country to
build 2,000 homes for the country’s growing middle-class. I am
seeking a construction and development loan to build out the
site infrastructure and construct the first 500 units. Where can I
get this type of financing?
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Terms for OPIC Financing
• Long-term financing (tenors from 3 to 20 years)
• Fixed interest rate available
• Accepts foreign collateral plus “project completion support”
• Finance from 50 to 75% of the total project cost
• Loans from $350,000 to $250 million
• Direct loans for projects involving U.S. small and medium –
sized enterprises (SMEs):
• US SME or U.S. citizen/permanent resident owns at least
25% of project shares; OR
• Other significant U.S. participation (e.g., U.S. contractor,
U.S. operator, U.S. franchise).
• No U.S. procurement requirements.
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Political Risk Scenarios
Scenario One: I am a U.S. company that grows, processes, and exports
tea leaves from East Africa. A history of political violence plagues the
country and I am fearful that an outbreak of violence during the
upcoming elections could result in damage to our facilities, or perhaps
disrupt the transportation infrastructure so that I cannot get my goods
to market. How can I protect my company against such risks?
Scenario Two: I am a U.S. renewable energy developer building a solar
farm in Southeast Asia. I rely on a Feed-In Tariff approved by the
government to guarantee a price “floor” for the power I produce. I am
concerned that if another political party wins the election, the new
government may slash the feed-in tariff rates. Also, I have a contract
with a government-owned utility to buy my power, but I worry what will
happen if the government abrogates the contract. How do I protect my
company against such regulatory and expropriatory risks?
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Terms for OPIC Political Risk Insurance
• PRI covers acts of political violence;
expropriation; and currency inconvertibility
(aka, currency conversion and transfer)
• Protection for different types of U.S.
exposure: equity, debt, leases,
performance/advance payment guaranties,
contracts with governments, etc.
• Policies of all sizes, from very small up to
$250 million
• Up to 20-year tenors with fixed premium
payments
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Terms for OPIC Investment Funds
• OPIC supports the creation of privately-owned and managed
investment funds with debt capital
• These funds make equity investments in companies
overseas (U.S. owned and non-U.S. owned)
• Supported funds invest in a wide range of sectors, including
renewable energy, energy efficiency, ICT, health care, and
financial services
• Applications made to fund managers directly:
http://www.opic.gov/what-we-offer/investment-funds/fulllist-of-funds
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OPIC – What’s New
• Active portfolio of $14.5 billion
• Geographic Breakdown:
•Latin America – 24%
•Africa – 21%
•MENA – 18%
•Asia – 14%
•Russia/NIS – 10%
•East/SE Europe – 7%
•Global – 6%
• Priorities: MENA, Sub-Saharan Africa, Renewable Resources, Food Security
• New Products: Feed-In Tariff (FIT) coverage; Energy Efficiency product;
African Clean Energy Finance (ACEF) Initiative
• New Country Additions: South Sudan
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I have a project. How do I learn more?
1.
Review the website: www.OPIC.gov
(Hint: For financing, review
SME Finance Eligibility Checklist)
2.
Consult Small Business Guide:
http://www.opic.gov/small-business
3. Discuss your project with OPIC:
- info@opic.gov or +1 (202) 336-8400
- Attend OPIC’s EXPANDING HORIZONS workshop for small businesses:
October 3rd in Seattle, WA
October 18th in Chicago, IL
4. Insurance: Complete Form 50
Finance: Complete Section1a of Form 115
5. Need assistance? Loan Originators: www.ednaccess.com
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Contact Details
Alison Germak Gatchev
Director, Corporate Development
Small & Medium Enterprise (SME) Finance
Overseas Private Investment Corporation (OPIC)
1100 New York Avenue, N.W.
Washington, D.C. 20527 U.S.A.
Tel: +1 (202) 336-8651
Email: Alison.Gatchev@opic.gov
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