OPIC Issues First Green Guaranties, Supporting Climate-Friendly Investments
September 25, 2014
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, this week issued its first-ever Green Guaranties to eligible U.S. investors in domestic debt capital markets. These U.S. government-guaranteed obligations adhere to the Green Bond Principles of 2014, developed in collaboration with leading capital markets issuers, investors, underwriters and environmental groups.
By providing these Green Guaranties, OPIC joins other public and private sector institutions in supporting climate-friendly investments, which include green bonds. The OPIC Green Guaranties raised $47 million toward OPIC’s commitment to finance the construction of the Luz del Norte solar project in Chile – which, when completed will be the largest photovoltaic project in Latin America.
“The offering of OPIC’s first Green Guaranties is a significant milestone. This underscores commitments made by both OPIC and the U.S. Government towards addressing the global challenge of climate change,” said Elizabeth Littlefield, OPIC’s President and CEO. “This is the kind of innovative, impactful financing that has helped keep this Agency nimble and effective over the past four decades as the world of development finance has been swiftly evolving.”
OPIC’s Green Guaranties support the funding of certificates of participation, which have been offered in the U.S. debt capital markets for some time. But OPIC’s self-identification of these guaranties in adherence with the commonly-accepted Green Bond Principles encourages the growth of an asset class that is drawing increasing interest as an investment generating both environmental and financial returns. OPIC will continue to identify opportunities to offer Green Guaranties on OPIC-supported renewable energy developments and additional projects that align with the Green Bond Principles.
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, guaranties, 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 $76 billion in U.S. exports and supported more than 278,000 American jobs.