OPIC CEO Signs Letters of Interest in Argentina
November 28, 2018
PROJECTS TO SPUR OVER $3 BILLION IN PRIVATE INVESTMENT AND ECONOMIC GROWTH
BUENOS AIRES – Ray W. Washburne, President and Chief Executive Officer of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, today signed six letters of interest to advance several projects in support of Argentina’s economic growth. The agreements – which total $813 million in U.S. support – will catalyze hundreds of millions in additional private capital. In all, the over $3 billion worth of projects will support sectors ranging from infrastructure to energy to logistics.
“By supporting the development of high-impact sectors like logistics and value chains, transportation infrastructure, and energy, these projects will be strong drivers of economic growth and stability in Argentina,” said Washburne. “Latin America is a longstanding OPIC priority and today’s agreements highlight OPIC’s continued commitment to the region.”
The letter of interest is the first preliminary agreement in the financing process. Before any financing can be committed or disbursed, OPIC must evaluate and review the project to determine if it meets OPIC’s standard underwriting and policy criteria:
The six agreements were signed with:
- Tecpetrol and Transportadora de Gas del Sur for $350 million in financing to construct a natural gas pipeline across Argentina and support the development of the country’s energy resources.
- Astris Infrastructure to provide $250 million in financing for the repair and expansion of a major toll road stretching from Buenos Aires to Mendoza to improve regional connectivity and facilitate trade.
- YPF Luz for a $50 million loan to support 122 MW in wind power in Santa Cruz and add a reliable source of energy to the national grid.
- Genneia, two agreements to lend $118 million to support the construction of both a wind and a solar power plant, together generating 222 MW of sustainable energy in the Ullum and Chubut regions of Argentina.
- Plaza Logística to provide a loan of $45 million to expand the company’s warehouses in the greater Buenos Aires region and enhance Argentina’s logistics network.
OPIC has in recent months launched several initiatives to drive investment to Latin America and the Caribbean including 2X Americas to mobilize $500 million in capital to projects that support the region’s women, and the Northern Triangle Initiative to catalyze $1 billion of investment in El Salvador, Guatemala, and Honduras.
Mr. Washburne is in Buenos Aires for the annual G20 Leaders’ Summit taking place from November 30th to December 1st.
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.