Press Release

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Timothy Harwood

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Tuesday, February 22, 2005

OPIC Board Approves $275 Million to Support Citigroup Lending in Mexico and Pakistan

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) approved $200 million in OPIC financing to support lending by Citigroup in Mexico and Pakistan.

The board first approved a $200 million guaranty framework agreement by which OPIC will share credit risk with Citigroup subsidiary Banamex, S.A. in downstream project loans in Mexico. Specifically, the facility will focus on middle market lending, corporate lending and the microfinance sector. This is the first OPIC credit risk-sharing program in Mexico.

Next, the board approved $75 million in new OPIC financing to supplement an existing $75 million Pakistan guaranty facility agreement with Citigroup, created in 2002 to increase U.S. investment in Pakistan.

“OPIC’s on-lending framework agreements with Citigroup have generated strong developmental benefits in host countries, by leveraging private capital, increasing bank-market liquidity, and transferring bank skills and assets,” said OPIC President and CEO Dr. Peter Watson. “We expect that these two new lending frameworks will produce similar positive results, to the benefit of ordinary Mexicans and Pakistanis.”

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.