OPIC Board Approves $1.8 Billion to Development Projects Across Four Continents
June 14, 2018
WASHINGTON, D.C. - The Overseas Private Investment Corporation (OPIC) on Thursday approved $1.8 billion in financing and political risk insurance for multiple projects that will advance development in Latin America, Eastern Europe, Asia and Africa.
OPIC, the U.S. Government’s development finance institution, approved projects in a range of sectors including telecommunications, power generation, critical infrastructure and financial services.
Commitments approved will advance the Agency’s 2X Women’s Initiative to mobilize investment in the world’s women; as well as the Northern Triangle Initiative to mobilize investment as a stabilizing force in Central America; and a forthcoming initiative to forge stronger ties between Africa and the rest of the world.
“The range of financing and insurance commitments approved today highlights OPIC’s commitment to advancing development around the world, and illustrates the Agency’s versatility in supporting such diverse projects from major roads and power plants to financial services that will empower female entrepreneurs,” said Ray W. Washburne, OPIC President and Chief Executive Officer. “I want to thank all of our partners and all the OPIC deal teams for their hard work on these projects which will have such a positive impact on so many lives and communities.”
Read President Washburne’s report to the board here.
Projects approved include
- Construction of a toll road in Colombia $250 million in financing to support the design, construction and operation of an 84 kilometer corridor of a tolled, four-lane divided highway in southwestern Colombia. The road is projected to serve almost seven million vehicles per year by 2020, reducing transit times and improving safety.
- Advancing energy security in Ukraine $250 million in political risk insurance related to the Naftogaz Purchase Facility, covering its revolving gas purchase facility that helps it build up gas reserves during the summer months to maintain a reliable supply and affordable prices.
- Expanding access to financial services to women in India $100 million in financing to IndusInd Bank Ltd. to support microfinance lending to women. This project will advance OPIC’s 2X Women’s initiative to mobilize investment in the world’s women.
- Expanded access to telecommunications in Africa $100 million to the cellular communications company Africell to support the upgrade and expansion of mobile telecommunications networks in The Gambia, Sierra Leone, Uganda and Democratic Republic of the Congo. This project will support economic growth and advance OPIC’s efforts to further connect Africa to the global market.
- Construction of wind power in India $225 million in financing to Mytrah Vayu (Sabarmati) Private Ltd. to support the development of a 252 megawatt wind farm in Tamil Nadu, India, to help the country meet rapidly growing demand.
- Support for airline reaching underserved communities in Brazil Up to $250 million in financing to Azul Linhas Aereas Brasileiras S.A., a low-cost air carrier in Brazil that was founded by U.S. citizen and JetBlue founder David Neeleman. Azul flies to rural communities in Brazil that have not traditionally been served by major airlines, and will use the OPIC financing for engine maintenance on its short-haul fleet serving these markets.
- Expanded access to financial services in Latin America $100 million in financing to support the expansion of small and medium-sized enterprise, consumer and housing lending in El Salvador, Guatemala, Honduras, Costa Rica, Nicaragua and Panama. The project will advance OPIC’s initiative to mobilize $1 billion of investment in Central America’s Northern Triangle region.
- Financing to support vehicle loans for SMEs in Central America $142.5 million in financing to CrediQ to support the expansion of vehicle finance programs for small and medium enterprises in sectors such as construction, agriculture and transportation. The project will help address the challenges small and medium enterprises often face accessing financing.
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.