OPIC Board Approves More Than $1.3 Billion to Development Projects in Africa, Indo-Pacific, and Latin America
December 13, 2018
WASHINGTON D.C. – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, on Thursday approved more than $1.3 billion in financing and political risk insurance across six projects that will advance development in Africa, the Indo-Pacific and Latin America.
Approved during the first board meeting of fiscal year 2019, the projects will expand access to financial services, energy, and housing, and advance several OPIC initiatives including the 2X Women’s Initiative to mobilize capital to women, and the Northern Triangle Initiative to drive investment to Central America.
“These projects will mobilize billions of dollars in private-sector capital to address urgent global development challenges. They underscore OPIC’s commitment to advancing development in a manner that is financially sustainable, adheres to the highest standards, and empowers local communities and workers,” said OPIC President and CEO Ray W. Washburne. “I want to thank all of our partners and OPIC staff for their contributions to these projects, which will improve so many lives around the world.”
Read President Washburne’s report to the board here.
Projects approved include:
- Advancing energy security in Egypt A total of $430 million in political risk insurance to Noble Energy, Inc. to support the restoration, operation, and maintenance of a natural gas pipeline in Egypt and the supply of natural gas through the pipeline from Israel. The project is expected to supply up to ten percent of Egypt’s domestic natural gas demand.
- Expanding access to financing for small and medium (SMEs) enterprises in Honduras Up to $92.3 million in financing to Banco del Pais S.A. to increase lending to small and medium-sized enterprises in Honduras, where access to long-term financing is limited and constrains economic activity. Over one fourth of the loan proceeds will be allocated to female business owners, advancing OPIC’s 2X Women’s Initiative.
- Strengthening the energy supply in India Up to $350 million in financing to ReNew Power Ltd. to support the construction of approximately six solar and wind power plants in India. The project will strengthen energy security in India by diversifying the country’s power generation mix with renewable sources of energy.
- Supporting home ownership in Ecuador $150 million in financing to help Banco Pichincha expand mortgage lending to low- and middle-income first-time home buyers and address the shortage of affordable housing in Ecuador.
- Expanding lending to underserved populations in Lebanon A $150 million guaranty facility expansion to support Vitas Lebanon SAL’s lending to SMEs, women, and rural borrowers, and to groups that face substantial barriers to financial services in Lebanon.
- Providing expansion capital to SMEs in Paraguay $138 million in financing to Banco Regional S.A.E.C.A. to improve access to growth capital for small and medium-sized enterprises in Paraguay. The project will support OPIC’s 2X Women’s Initiative by focusing on expanding lending to businesses owned or operated by women.
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.