Press Release

Wednesday, February 7, 2007

OPIC Announces $566 Million in New Private Equity for Jordan, Region

Minimum of $230 million to be invested in Jordan

AMMAN, Jordan – Robert Mosbacher, Jr., President and CEO of the Overseas Private Investment Corporation (OPIC), today announced $566 million in new projects for Jordan and its neighboring countries. OPIC will support three investment funds, with a minimum of $230 million to be invested in Jordan.

“Jordan is not only a longstanding and important ally of the United States, but a nation that has undertaken the kind of economic reforms that are today rewarded by new levels of foreign investment,” Mosbacher said during a ceremony attended by Jordanian Minister of Planning and International Cooperation Her Excellency Suhair Al Ali. “The projects we announce today will provide vital capital to growing companies in both Jordan and its neighbors in the Middle East.”

“By focusing these investments on sectors such as affordable housing, small business and regional companies, we intend to spread the developmental benefits widely, so that as many people as possible enjoy the fruit of Jordan’s commitment to economic growth,” Mosbacher said.

One of the funds announced today, the Jordan Fund II, will commit $150 million for investments in private, small and medium sized Jordanian firms. The Fund will be multi-sectoral but will place an emphasis on promising sectors in Jordan, such as telecommunications, information technology, financial services, aviation, education and medical/pharmaceuticals.

The two other funds will dedicate a percentage of their total capitalization to investments in Jordan: the $113 million EuroMENA Fund, 30 percent of which will target investments in Jordan, will invest in the regional expansion of middle market companies in the Middle East and North Africa (MENA) with a primary focus on Jordan, Egypt, Lebanon and Morocco. The $300 million Emerging Markets Housing Fund, established to invest in markets that are experiencing rapid growth in housing demand, will focus on Jordan and South Africa, with a secondary focus on other countries in Africa and the Middle East. It is expected to generate 87,000 units of affordable housing, and invest 15 percent of its total capitalization in Jordan or $45 million.

All three funds were approved by OPIC’s board of directors at its January 18 meeting.

Jordan Fund II

OPIC financing: $50 million

Target capitalization: $150 million

A private equity fund established to invest in private, small and medium sized Jordanian firms, the Jordan Fund II will provide growth capital, employment opportunities and consolidation for fragmented industries. The Fund will invest based on commercial considerations and will help transform its portfolio companies by funding expansion into new markets, improving management processes and corporate governance, optimizing capital structures, and participating in business development. The Fund will be multi-sectoral but will place an emphasis on promising sectors in Jordan, such as telecommunications, information technology, financial services, aviation, education and medical/pharmaceuticals.

The Fund is a successor to the Jordan Fund I, a fund also focused on private Jordanian firms. OPIC selected the Jordan Fund Management Company, a subsidiary of Foursan Group, as the Fund’s investment manager. Foursan is a private equity investment company with a primary focus on the Middle East.

EuroMENA Fund

OPIC financing: $50 million

Target capitalization: $113 million

Total for Jordan: up to $35 million (30 percent of Fund total)

A private equity investment fund established to invest in the regional expansion of middle market companies in the MENA region with a primary focus on Jordan, Egypt, Lebanon and Morocco.

The fund’s strategy is to establish regional leaders in diverse sectors through consolidation and mergers. The fund will enhance management quality, improve research and development, implement corporate governance structures, and optimize financial reporting and transparency in its portfolio companies. The ultimate goal will be to build more efficient and more profitable regional businesses.

Potential target sectors include banking and insurance, construction materials and services, pharmaceuticals, chemicals, cosmetics, food and beverage production, consumer products, and specific industrial products.

OPIC selected as fund manager Capital Trust Group, as 20-year-old private equity, real estate and corporate finance advisory firm operating in the United States, Europe and the Middle East. The EuroMENA Fund is the seventh fund raised and managed by the Capital Trust.

Emerging Markets Housing Fund

OPIC financing: $100 million

Target capitalization: $300 million

Minimum Investment for Jordan: $45,000,000 (15 percent of Fund total)

A private equity investment fund designed to provide investment capital and affordable housing finance expertise to markets that are experiencing rapid growth in housing demand, with acute housing needs at the lower end of the income spectrum. The fund will have a primary focus in Jordan and South Africa, countries where the need for housing development among low-to-middle income households is growing rapidly, and where local market conditions are supportive of housing development. It will have a secondary focus on other countries in Africa and the Middle East.

The fund will serve as a catalyst to attract future investment capital by demonstrating the prospect of profitable ventures in low-income housing markets, particularly through mixed-income and mixed-use housing developments. It will invest in housing developments and in companies that contribute to the development of housing at any point along the value chain, including housing development companies, housing finance companies, mortgage banking companies and secondary mortgage market makers.

The fund expects to develop approximately 87,000 affordable housing units in its target markets.

OPIC selected as fund sponsor International Housing Solutions, a joint venture between MuniMae, a Baltimore-based real estate company, and the principals of Howard Eurocape, a real estate developer based in Ireland. The general partner is Emerging Markets Housing Fund Management Company, based in Luxembourg.