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Press Release

Friday, July 14, 2006

U.S. Small Business Uses OPIC Insurance to Provide Consumer Credit at Retail Chain in Peru

WASHINGTON, D.C. – A U.S. small business will use political risk insurance from the Overseas Private Investment Corporation (OPIC) to provide consumer credit throughout one of the largest retail appliance chains in Peru, in the process establishing one of the first financial institutions in the country to offer such credit nationally.

OPIC will provide $10 million in insurance to LFLP Holdings, LLC, of Miami, for LFLP’s investment in a financial institution, Financiera Total TFC, that will provide consumer credit at La Curaçao retail stores throughout Peru. The new consumer credit service, which will reach all of Peru’s major population centers, as well as rural areas, will enable credit holders to access balance information and make internet purchases. Financiera TFC was formerly Volvo Finance Perú, which provided leasing and financing for Volvo vehicles.

LFLP anticipates that the project will generate 180 permanent local jobs and $1.3 million in annual tax revenue for the Peruvian government.

La Curaçao stores sell appliances, electronics, fitness and other consumer goods in Peru.

“By enhancing Peruvians’ access to credit and therefore to consumer products, as well as by generating significant employment opportunities, this project will have strong developmental benefits for Peru’s economy,” said OPIC President and CEO Robert Mosbacher, Jr. “The project will particularly help consumers in rural areas, where credit is typically difficult to obtain. OPIC is pleased to support a U.S. small business in a project with so many developmental benefits.”

The project is OPIC’s second with LFLP: last September, OPIC provided $25 million in insurance to LFLP for its investment in 43 La Curaçao stores throughout Peru, and particularly the modernization of 30 of the stores, including the provision of additional lighting, user-friendly displays, and information system upgrades.


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.