Presentation on theme: "Overseas Private Investment Corporation An Agency of the U.S. Government."— Presentation transcript:
Overseas Private Investment Corporation An Agency of the U.S. Government
Overseas Private Investment Corporation2 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.
Overseas Private Investment Corporation3 Where We Work - 150+ Countries
Overseas Private Investment Corporation4 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
Overseas Private Investment Corporation5 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? Financing Scenarios
Overseas Private Investment Corporation6 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.
Overseas Private Investment Corporation7 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?
Overseas Private Investment Corporation8 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
Overseas Private Investment Corporation9 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/full- list-of-funds http://www.opic.gov/what-we-offer/investment-funds/full- list-of-funds
Overseas Private Investment Corporation10 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
Overseas Private Investment Corporation11 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: - firstname.lastname@example.org or +1 (202) 336-8400 - Attend OPIC’s EXPANDING HORIZONS workshop for small businesses: October 3 rd in Seattle, WAOctober 18 th in Chicago, IL 4. Insurance: Complete Form 50 Finance: Complete Section1a of Form 115 5. Need assistance? Loan Originators: www.ednaccess.com
Overseas Private Investment Corporation12 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