OPIC
The Overseas Private Investment Corporation (OPIC) was established as an
agency of the U.S. government in 1971. OPIC helps U.S. businesses invest
overseas, fosters economic development in new and emerging markets,
complements the private sector in managing risks associated with foreign
direct investment, and supports U.S. foreign policy. Because OPIC
charges market-based fees for its products, it operates on a
self-sustaining basis at no net cost to taxpayers.
Mobilizing the U.S. private sector to advance U.S. foreign policy and
development initiatives, OPIC-supported projects make a difference by
expanding economic development, which can encourage political stability
and free market reforms. Currently, OPIC services are available for new
and expanding business enterprises in more than 150 countries worldwide.
OPIC’s financing and political risk insurance also help U.S. businesses
of all sizes to compete in emerging markets and meet the challenges of
investing overseas when private sector support is not available. OPIC
promotes U.S. best practices by requiring projects to adhere to
international standards on the environment and worker and human rights.
Financing
OPIC Financing provides medium- to long-term funding
through direct loans and loan guaranties to eligible investment projects
in developing countries and emerging markets. By complementing the
private sector, OPIC can provide financing in countries where
conventional financial institutions often are reluctant or unable to
lend on such a basis.
Business Categories
OPIC’s Small and Medium-Enterprise
Financing is available for businesses with annual revenues under $250
million.
OPIC’s Structured Financing focuses on U.S. businesses with annual
revenues over $250 million and supports large-scale projects that
require large amounts of capital, such as infrastructure,
telecommunications, power, water, housing, airports, hotels, high-tech,
financial services, and natural resource extraction industries. OPIC can
also provide long-term working capital and multiple-year capital
expenditure programs. The amount of capital needed for any project can
be greater than one financial institution can provide on its own due to
per-project limits or diversifications guidelines. As a result, OPIC
works with other co-lenders, if necessary, to bring sufficient resources
to a given project.
Insurance
Political risk insurance is available to U.S. investors,
contractors, exporters and financial institutions involved in
international transactions. Political risk insurance can cover currency
inconvertibility, expropriation and political violence, and is available
for investments in new ventures, expansions of existing enterprises,
privatizations and acquisitions with positive developmental benefits.
The Need for Political Risk Insurance:
* To cover possible damage or loss:
- Tangible assets such as trucks, manufacturing or drilling equipment
- Value of investment
- Earnings or return of the investment
* To deter long-term losses through OPIC’s advocacy
Benefits of OPIC Insurance
* Unparalleled experience and access to information resources
* Unmatched claims handling reputation
* Can cover up to $250 million per project for up to 20 years
* Offers co-insurance and re-insurance with private market carriers to increase capacity for large projects
* Flexible programs targeted to small businesses
* Backed by the full faith and credit of the United States Government
E-mail:info@onfefinancial.com