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Press Release

Wednesday, November 10, 2004

OPIC Board Approves $250 Million in Financing for Global Lending Framework Agreement

Expanded partnership with Wachovia emphasizes lending in Turkey

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) today approved $250 million in financing for a global framework agreement which will enable Wachovia Bank, N.A. to expand its lending to banks in emerging markets. The framework, which supplements an existing agreement between OPIC and Wachovia, will devote up to 60 percent of its lending – $150 million – to banks in Turkey.

OPIC’s financing will augment a $100 million framework agreement by which OPIC and Wachovia share risk on loans administered by the North Carolina-based bank, America’s fourth-largest in terms of assets. Since the existing framework agreement was executed in February 2004, OPIC has approved five Wachovia transactions with an outstanding exposure of approximately $78 million, including two transactions with Turkish banks totaling $45 million.

“OPIC’s existing framework with Wachovia has been extremely successful, enabling the bank to expand its lending to customers in emerging markets worldwide, and we anticipate further success with this expansion,” said OPIC President and CEO Dr. Peter Watson. “Turkey in particular represents an important market for Wachovia, and should derive important economic and developmental benefits from this facility.”

“Wachovia’s correspondent banks represent an effective conduit for channeling capital to borrowers in emerging markets, in turn increasing the availability of funds for other sectors of their economies. By supporting this framework, OPIC is diversifying its on-lending in eligible countries, while at the same time assisting an American bank in its efforts to increase its business overseas,” Dr. Watson added.


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.