OPIC Provides Financing to Support Small Business Lending in Kazakhstan
October 16, 2018
WASHINGTON D.C. – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has provided $14.65 million in financing to Kazakhstan’s Tengri Bank JSC, to support the expansion of small business lending in the country.
In addition to helping foster economic growth in Kazakhstan, where small and medium enterprises have limited access to credit, the loan will also help the country diversify its economy beyond the oil and gas sector.
This financing represents the first project OPIC has committed in Kazakhstan since it signed a Memorandum of Cooperation committing to support more investment in the country earlier this year.
“Small businesses are critical to economic growth and stability and this project supporting small business lending in Kazakhstan will help small enterprises access financing so they can expand and hire more employees,” said Ray W. Washburne, OPIC President and CEO.
The financing to Tengri will also advance OPIC’s 2X Women’s Initiative, by prioritizing lending to women-owned and women-led businesses. At least 25 percent of the loan proceeds are to be used to support small and medium enterprises that are majority-owned or managed by women. In addition, it is expected to expand access to electronic banking, peer-to-peer lending and online microfinance lending.
OPIC, the U.S. Government’s development finance institution, provided the financing through a small business lending facility with WorldBusiness Capital, Inc. of Hartford, Connecticut.
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.