Overseas Private Investment Corporation

An Agency of the U.S. Government

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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 InsuranceProtects investors against political risks that their assets may face when deployed overseas

• Investment FundsSupports privately-owned, privately-managed funds that make equity investments in overseas companies

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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

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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/full-list-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 GatchevDirector, Corporate Development

Small & Medium Enterprise (SME) FinanceOverseas Private Investment Corporation (OPIC)

1100 New York Avenue, N.W.Washington, D.C. 20527 U.S.A.

Tel: +1 (202) 336-8651Email: Alison.Gatchev@opic.gov