OPIC board approves seven new deals at September meeting
OPIC’s Board of Directors held its final meeting of the fiscal year on September 19 and approved deals in Africa, the Middle East and Latin America that will improve access to electricity, small business lending, and healthcare while supporting U.S. investment in developing countries. The deals approved include:
- Small business lending in Kenya: OPIC agreed to provide a $75 million loan to Commercial Bank of Africa to improve small business access to lending. The loan will help finance a platform to provide financing to small businesses that supply goods and services to larger businesses, expand the bank’s mobile banking services and expand its portfolio of small and medium enterprises in Kenya and Tanzania.
- Wind power in Pakistan: OPIC agreed to provide an investment guaranty of up to $101.5 million to Dewan Energy Ltd. to support construction of a 50 megawatt wind power project in the Sindh province in southern Pakistan, where a windy climate supports wind power generation. The power generated will help diversity the country’s electricity supply and alleviate a large power deficit in Pakistan, which faces daily power outages of more than eight hours in cities and around 16 hours in rural areas.
- Solar power in Chile: OPIC agreed to provide a 19.5-year investment guaranty of $155 million to PV Salvador SpA to support a solar power plant in northern Chile, the third solar project OPIC has supported in that country to date. Collectively, these projects will generate 220 megawatts of power, helping Chile diversity away from hydropower, gas and coal.
- Small business lending in Brazil: OPIC agreed to provide a $400 million investment guaranty to Banco Itau Unibanco S.A. to help Brazil’s largest private bank expand lending to small and medium enterprises. Itau will use the loan to lend to women and rural clients, focused in the northeastern part of the country which is less developed.
- Hospital Financing in Turkey: OPIC agreed to provide a $250 million loan with a tenor of up to 18.5 years to the Bilkent Integrated Health Campus to support construction of a health campus near Ankara. The new campus — which will include a core diagnostic center, and six towers housing different medical services as well as a rehabilitation hospital and a psychiatric hospital – will help address a need for more modern healthcare in the region, where some existing hospitals are more than 100 years old and overcrowded.
- Hydropower in Chile: OPIC will provide an investment guaranty of up to $250 million to Alto Maipo SpA the development of a 531-megawatt run-of-river hydroelectric power plant east of Santiago, which will help reduce electricity costs and greenhouse gas emissions, while helping the country diversify away from coal and diesel generation.
- Insurance for oil project in Egypt: OPIC will provide up to $40 million in political risk insurance covering expropriation, political violence and currency inconvertibility for Apache Corp.’s $11 billion investment in Egypt’s oil and gas sector. This deal will extend for the third time the insurance that OPIC has provided to Apache in Egypt, enabling the largest U.S. investor in Egypt to continue to do business there.