OPIC Board of Directors approves nearly $1.2 billion in financing to support development investments globally
June 9, 2016
WASHINGTON – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, today approved support for eight new development projects totaling nearly $1.2 billion in OPIC financing. These private sector-led development projects will invest in Sub-Saharan Africa, Ukraine, the Middle East, and South America, in a variety of sectors to include healthcare, financial services, clean energy and infrastructure.
“With more than $1.2 billion dollars approved to projects spanning across four continents, these are great examples of the types of projects and investment that OPIC can catalyze,” said Elizabeth Littlefield, OPIC President and CEO. “By providing underserved populations with energy access, health services, and the financial tools needed to create and expand their businesses, these projects will make a large impact in much-needed areas around the globe.”
The board of directors’ approvals for OPIC support included:
- Up to $250 million in financing for the development of the Izmir Bayrakli Integrated Health Campus to support the development, construction, and operation of a health campus with capacity of 2,060 beds in Izmir, Turkey. Up to $250 million in financing for the development of the Kocaeli Integrated Health Campus to support the development, construction, and operation of a health campus with capacity of 1,180 beds in Kocaeli, Turkey. These projects are part of Turkey’s Healthcare Transformation Program which aims to leverage private funding for efficient construction and management of new hospital campuses. They will have a substantial development impact on the well-being of Turkish residents and the economic development of the country. Turkey has the lowest number of beds per 10,000 people of any European Union candidate country with 26 beds per 10,000 people. The Turkey Healthcare Transformation Program aims to provide 32 beds per 10,000 people by 2023.
- Up to $350 million in financing to Acu Petroleo S.A. - T-Oil to support the development of an oil transshipment terminal located at the Acu Port in Sao Joao da Barra, a municipality in the Brazilian state of Rio de Janeiro. Currently, oil from Brazil’s off-shore oil reserves is transferred from ship-to-ship in open waters or in environmentally sensitive areas. OPIC’s financing will support the country’s first private transshipment terminal and result in a more cost effective and environmentally sustainable solution for Brazil. By providing a contained, protected area for transshipment, the project reduces the potential and impact of oil spills during transshipment operations.
- Up to $53 million in financing and $18.2 million in insurance to ContourGlobal Cap des Biches Senegal to support the 33 megawatt expansion and development of the existing 52.9 megawatt combined-cycle thermal power plant located in Cap des Biches. This OPIC supported project will provide efficient and reliable electricity to the Senegalese grid by adding a total of 85.9 megawatt generation capacity, approximately 30 percent increase in overall functioning capacity, contributing greatly to solve the problem of electricity shortages in Senegal.
- Up to $37.5 million in financing to Emerging Europe Growth Fund III L.P., a private equity fund launched by Horizon Capital Advisors, LLC. This fund seeks to invest in fast-growing, mid-sized, export-oriented companies in Ukraine and Moldova with the potential to grow from local to regional market leaders. Horizon Capital Group is a private equity fund manager that originates and manages investments in mid-cap companies with offices in Kyiv, Ukraine, and Chicago, Ill.
- Up to $25 million in financing to Dragon Capital New Ukraine Fund L.P., a private equity fund managed by a subsidiary of Dragon Capital Holdings Limited. This fund is expected to have a significant developmental impact in Ukraine by investing in established Ukrainian businesses that are focused on product expansion, modernization, and growth potential in a wide range of sectors including agribusiness, healthcare, infrastructure, retail, consumer goods, and real estate.
- Up to $100 million in financing to Sarona Frontier Markets Fund 3, L.P., a private equity fund-of-funds managed by Sarona Asset Management, Inc. Sarona Frontier Markets Fund 3, L.P. will invest in private equity funds that invest growth equity in small to mid-market companies in global frontier and emerging markets. Sarona Asset Management seeks to implement strong ethical, social, and environmental policies, and to add significant strategic and management value to the funds in which Sarona Frontier Markets Fund 3 invests. Sarona Asset Management is headquartered in Ontario, Canada and has three offices worldwide.
- Up to $50 million in financing to Foursan Capital Partners II, a private equity fund managed by the Foursan Group. This fund will have a positive developmental impact by supporting investments in Jordan and neighboring markets as well as providing capital and operational expertise to select markets across a range of sectors in the Middle East and North Africa.
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.