OPIC celebrates innovation in 2012 annual report
OPIC’s newly-released 2012 annual report showcases several key projects and agency priorities of the past year and highlights the role of innovation in our work. Innovation has long been a guiding principal at OPIC, which has built creative deal structures and partnerships to address the challenges of investing in the developing world and worked with several innovative businesses that found new solutions to old problems. Here are some recent examples:
In Indonesia, OPIC worked with Citi to help support microfinance lending in local currency. OPIC provided a $21.6 million loan guaranty to support a local currency loan from Citibank Indonesia to Bank Andara, a major local microfinance lender. As microfinance investing has risen sharply in recent years, one challenge has been getting funds to the world’s poorest people, and Bank Andara will use the funds to make loans to local microfinance institutions, many of which focus specifically on lending to the poorest populations.
In Haiti, OPIC provided $17 million in long-term loans to Development Innovations Group (DIG), a Maryland-based finance and development firm, in conjunction with a $6 million grant from the U.S. Agency for International Development (USAID) and $3 million from the Clinton Bush Haiti Fund. This creative partnership allowed for an establishment of a financing facility for low-income housing in Haiti after the 2010 earthquake. The facility will help to address a critical need for mortgage financing in Haiti, where people continue to live in tents and other temporary housing.
In Rwanda, a U.S. horticulturist has used OPIC financing to establish a business, Forestry and Agricultural Investment Management, focused on growing healthy, virus-free plant cultures. Diseased plants and old seedlings has contributed to a serious decline in the country’s production of food staples and the introduction of healthier plants and better growing processes has the potential to significantly improve farm productivity, food security and nutrition in the community.
To learn more about OPIC’s innovative work over the past year, please see our 2012 annual report.