OPIC Announces Record-Setting Year - Also Achieves $4.4 Billion in New Commitments to Catalyze Private Sector-Led Development
OPIC positively impacts the world’s poorest with a significant increase to $1.9 billion of commitments in low-income countries, which will catalyze billions more in private sector co-investment
38th consecutive year of helping to reduce federal deficit
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, today announced results from a record-setting 2015 fiscal year. OPIC support to private sector-led development helped address critical global development challenges while supporting U.S. business expansion in emerging growth markets.
“This year’s results show the effectiveness of OPIC as a development agency, as a first-rate financial institution, and a U.S. foreign policy tool that delivers,” said Elizabeth Littlefield, OPIC’s President and CEO. “Fiscal year 2015 saw strong trends in OPIC support to agriculture, education, energy, and financial services, spanning the spectrum of the world’s development needs. By bolstering the Agency’s institutional infrastructure over the past years, OPIC has been able to increase its impact and its efficiency while steadily growing its portfolio.”
OPIC’s strong performance in fiscal year 2015 is the direct result of continued innovation, client-focus and strengthening its internal operations. By adapting to the dynamic global finance environment with innovative new approaches that respond to market needs, OPIC continues to lead the way in supporting private-sector led inclusive global economic development. Financial highlights from fiscal year 2015 include:
- OPIC committed $4.4 billion in new financing and insurance to private sector enterprises working in OPIC-eligible emerging markets. The new projects that OPIC supported in FY15 are expected to bring a total of $14 billion in development-focused investment to emerging economies.
- OPIC's current portfolio of active projects is nearly $20 billion - an agency record - up almost 50% from $13 billion in 2009.
- Among OPIC’s new commitments, $1.9 billion is in support of development projects in low-income countries, a significant increase from previous years.
- At the same time, OPIC’s prudent underwriting practices and expert portfolio management allowed the Agency to generate $434 million for the U.S. taxpayer, marking the 38th consecutive year OPIC helped to reduce the federal deficit.
- Nearly 25% of OPIC’s total active portfolio is now in sub-Saharan Africa, the largest of any region. This is an increase from just 13% a decade ago.
- Fiscal year 2015 commitments included almost $2.0 billion to infrastructure and energy projects around the world, including the fifth consecutive year of $1 billion or more in support to renewable energy.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. 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, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. 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.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker's rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.