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Eligibility: OPIC finances projects that have substantial U.S. participation (at least 25 percent of the equity in the project), however, in most cases US involvement is closer to 50%. Projects must be commercially and financially viable with significant benefits to the social and economic development of the host country. Projects must adhere to environmental and labour standards, discourage corruption, and have no negative impact on US jobs (see OPIC's Environmental Handbook). OPIC will not lend to projects that can secure adequate financing from commercial sources.
Types of Projects Funded: OPIC supports business projects in virtually every industrial and economic sector, including agriculture, energy, construction, natural resources, telecommunications, transportation and distribution, banking, and services, among others.
Support is given to new investments, privatizations, and expansions and modernizations of existing businesses.
For a list of eligible countries, see:
http://www.opic.gov/GeneralOPIC/ctrylist.htm
Financial Instruments:
Finance: OPIC provides medium to long term funding through direct loans and loan guarantees and can offer both corporate and project finance. Total OPIC project support for any one project cannot exceed $USD 400 million, or $USD 250 million in the case of project finance. There is no minimum investment requirement. Since projects must be commercially viable, OPIC will not offer concessionary terms.
For more detailed information on financing products, see:
http://www.opic.gov/Finance/
Political Risk Insurance: Political risk insurance covers expropriation, political violence, and currency inconvertibility. Insurance is available for investments in new ventures, expansions, privatizations, or acquisitions with positive developmental benefits. Coverage is available for capital markets investors, equity investments, parent company and third-party loans and loan guarantees, and other forms of investment. OPIC can provide coverage up to $USD 250 million.
For more information on PRI products, see:
http://www.opic.gov/Insurance/
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How to Apply for Financing: : To apply for OPIC financing, investors must submit a description of the project with anticipated costs, financing options, contributions to the host country, and supply sources. These details must be accompanied with a description of the investors involved. OPIC will then review the application and may ask for additional details before a formal application can begin.
For information on how to apply for finance, see:
http://www.opic.gov/Finance/home.htm.
For information on how to apply for insurance, see:
http://www.opic.gov/Insurance/home.htm.
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