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Press Release

Friday, April 29, 2005

OPIC Board Approves Additional $20 Million for Asia Fund

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) approved $20 million in additional financing for an Asian investment fund that OPIC first approved for support in 2004.

The board approved $40 million in financing to the Clearwater Capital Partners Investments II, L.P. in April 2004, at the time the fund’s initial institutional capital commitment. During the fund manager selection process, OPIC placed conservative expectations on the fund’s ability to raise equity capital from institutional equity investors, with an initial target total fund capitalization of $100 million. However, the fund achieved greater success than anticipated raising equity capital, validating the fund’s strategy and enabling increased support from OPIC.

The fund will invest in the credits of small and medium-sized enterprises (SMEs) in Asia that are financially distressed. Through the purchase and restructuring of these credits, the fund will enable companies to improve their balance sheets and allow banks to redeploy capital in the form of new loans. The fund’s activities will also substantially enhance each target country’s financial infrastructure.

The fund will focus its investments in India, Indonesia, Malaysia, Thailand, Philippines and South Korea, with a target capitalization of $200 million now anticipated for the fund.

“The request for additional OPIC financing for the Clearwater Capital Partners fund is a positive development, reflecting investor confidence in the entrepreneurial potential of the targeted Asian countries. It also validates OPIC’s position as the initial institutional capital provider to the fund,” said OPIC Acting President and CEO Ross Connelly.

“This fund is unique for its focus on the SME market and local currency credits, a part of the Asian distressed debt market not served by large global firms. This fund will help support the establishment of a financial infrastructure for long-term debt markets in Asia, by creating market mechanisms that will have a positive impact on both industrial and financial sectors,” he added.

Clearwater Capital Partners, LLC, the fund manager, is a privately-owned firm founded in 2001, with offices in New York, Hong Kong, Mumbai, Seoul and Singapore.


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.