OPIC Board Approves $135 Million for Two Investment Funds for India
September 25, 2012
One to invest in SMEs, one in industrial logistics parks
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, approved $135 million in financing for two investment funds that will support small and medium-sized enterprises (SMEs) and industrial logistics parks in India – two sectors capable of driving economic growth in the country but which have to date lacked the capital to do so.
The Board approved $35 million for the BanyanTree Growth Capital II fund, designed to invest in SMEs, particularly in sectors overlooked by investors. The fund’s strategy is to bring quality management and environmental, social and governance best practices to targeted SMEs, enabling them to grow into sustainable businesses. The fund has a target capitalization of $175 million.
OPIC selected as fund manager BanyanTree, founded in 2008.
The Board also approved $100 million for IndoSpace Logistics Parks II, designed to address India’s significant demand for quality logistics parks by investing in warehouses, distribution centers, cargo handling facilities and other infrastructure in order to create more efficient and expansive supply chain networks, lower logistics costs, and reduce waste. The fund has a target capitalization of $350 million.
The fund’s investments could generate more than 25,000 local jobs and catalyze U.S. job creation as well: the vast majority of its target tenants are large multi-national corporations, including US-based firms.
OPIC selected as fund manager Realterm Everstone, a joint venture between Realterm Global and Everstone Capital.
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 more than $200 billion of investment in over 4,000 projects, generated an estimated $75 billion in U.S. exports and supported more than 276,000 American jobs.