OPIC Board of Directors Approves Nearly $800 million in Financing to Support Development Investment Globally
March 17, 2016
WASHINGTON – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s Development Finance Institution, today approved OPIC support for five new private sector-led development projects totaling more than $795 million in new OPIC financing.
“The projects approved today span the spectrum of positive impacts that OPIC’s development finance can spark,” said Elizabeth Littlefield, OPIC President and CEO. “Reaching from Southeast Asia to India to Africa, and in sectors from new broadband connectivity to inclusive banking services to sparking clean energy development, these projects show both how effective OPIC can be in impact lives across the developing world.”
The board of directors’ approvals for OPIC support included:
- Up to $120 million in financing to PT UPC Sidrap Bayu Energi, to support the development, construction, and operation of a planned 75 megawatt wind power facility in Indonesia, a country that suffers from an acute energy shortfall. This project will also help the Government of Indonesia reach its renewable energy target and diversify its generation mix.
- Up to $250 million in senior debt financing to subsidiaries of ReNew Power Ventures Private Limited to be utilized to construct up to 400 megawatts of new solar renewable power generation in India across multiple projects. With an innovative financing structure that streamlines the funding process for new energy projects, ReNew will help India achieve its goals to transition to a low carbon economy.
- Up to $171 million in financing to Tikona Digital Networks, to support the expansion of Tikona’s low-cost and rapidly scalable wireless broadband networks across India, a country that lacks widespread broadband service availability due, in part, to poor wireline infrastructure. Recent studies show that increased broadband penetration is linked to GDP growth in developing countries. OPIC support to Tikona will promote internet adoption among residential and commercial consumers and advance this critical foundation for economic and social development.
- Up to $155 million in financing to ACLEDA Bank, which will help expand a portfolio of micro-, small and medium enterprise (MSME) lending by the largest bank in Cambodia. OPIC will be providing two facilities, $30 million in financing dedicated to women-owned SMEs that will be carried out in partnership with the Goldman Sachs Foundation’s 10,000 Women initiative and a $125 million loan dedicated for ACLEDA’s broader MSME lending efforts.
- As part of the Scaling Enterprise Facility, OPIC has approved up to $99.9 million of guaranty in partnership with Citi for local currency lending to enterprises across impact sectors including access to finance, renewable energy, education, affordable housing and water and sanitation in low-income communities. This latest development partnership framework with Citi includes a focus on inclusive finance and sustainable development.
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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.