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Wednesday, November 10, 2004

OPIC Board Approves $65 Million for Southeast Europe Investment Fund

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) today approved $65 million in financing for the establishment of a private equity investment fund that will support investments in southeast Europe. The target capitalization for the fund is approximately $200 million, with a first closing targeted at $100 million.

The fund, called Southeast Europe Equity Fund II, will make equity investments in a diversified range of companies and sectors in Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Macedonia, Romania, Serbia & Montenegro, Slovenia and Turkey. Up to 20 percent of the fund may be invested in neighboring countries including Armenia, Azerbaijan, Czech Republic, Georgia, Hungary, Kosovo, Moldova, Poland and Slovakia.

OPIC selected as fund manager Bedminster Capital Management of Bedminster, New Jersey, which manages the Southeast Europe Equity Fund Ltd, a $200 million southeast Europe investment fund supported by OPIC that was organized in 2000.

“The first Southeast Europe Equity Fund is one of the top performing funds in the region, and we have every reason to expect similar success from this fund, given improving economic prospects in southeastern Europe and the management team’s regional experience,” said OPIC President and CEO Dr. Peter Watson. “OPIC is pleased to help provide a timely response to the need for private capital in southeastern Europe, by supporting direct investment in the region.”

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.