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Press Release

Friday, January 30, 2004

OPIC Board Approves $90 Million for Two Investment Funds in Latin America

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) approved $90 million in financing for two investment funds designed to increase private sector investment in Latin America. One of the funds will target development of the real estate sector in the region, with a focus on affordable and middle-income housing.

OPIC’s board first approved an OPIC investment guaranty of up to $55 million for a fund intended to mobilize private sector investment capital for projects in Latin America, as part of Bush Administration efforts to stimulate trade and investment in the region.

The fund, Darby-BBVA Latin American Private Equity Fund, is managed by Darby Overseas Investments Ltd. and Banco Bilbao Vizcaya Argentaria, S.A. Darby, a Washington DC based leading emerging markets private equity investment firm is a member of Franklin Resources, Inc.,a global investment organization operating as Franklin Templeton Investments.Darby has been engaged in private equity investing in Latin America since 1994. BBVA is the second-largest bank in Spain based on market capitalization, the third largest banking group in the Euro Zone, and the second-largest banking group in Latin America.

The board also approved an investment guaranty of up to $35 million for a fund designed to deploy capital for the development of housing and other projects in Latin American markets where demand dramatically exceeds supply, many of which are capital-constrained. The fund will represent one of very few sources of investment capital for housing within the region.

The fund will be managed by Palador Realty, an affiliate of Paladin Realty Partners, which is headquartered in Los Angeles. Paladin manages nearly $450 million in equity committed to more than 200 real estate assets throughout the United States and Latin America.


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.