OPIC Approves More Than $1.1 Billion in Development Projects
March 20, 2019
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, on Wednesday approved more than $1.1 billion in financing to support projects that will build critical infrastructure and expand access to housing, electricity and financial services in emerging markets around the world.
The projects supported advance many key OPIC initiatives including the 2X Women’s Initiative and the Northern Triangle Initiative to mobilize investment as a stabilizing force in El Salvador, Guatemala and Honduras. This was the first Board meeting chaired by Acting President and CEO David Bohigian.
“By partnering with private investors, OPIC mobilizes significant resources to advance development,” said Bohigian. “The projects approved today will channel investment into regions of the world where it is needed most -- improving lives, strengthening economies and advancing American foreign policy.”
Read Acting President Bohigian’s report to the board here.
Projects approved include:
Construction of a power plant in El Salvador. Up to $350 million in financing to construct a 378 MW liquefied natural gas power generation facility in the coastal city of Acajutla. The new power plant will be the largest thermal power plant in El Salvador and will increase the country’s power generating capacity by 23 percent, helping it meet growing demand and reducing dependence on diesel and heavy fuel oil.
Financing for microfinance and SME lending to women. Up to $150 million in financing to enable responsAbility Investments AG to lend to microfinance and SME lending institutions in up to 20 OPIC-eligible countries. OPIC’s financing will support an estimated 85,000 microfinance borrowers and SMEs. With approximately 65 percent of the loan expected to benefit women borrowers and woman-led SMEs, the project advances OPIC’s 2X Women’s Initiative.
Upgrade of a major toll road in in Colombia: A $350 million local currency guaranty to support the improvement, operation and maintenance of the Puerta de Hierro Toll Road along with a new 5.2 km bypass. The toll road will connect two major Caribbean port cities with Medellin and Bogata and other regions of the country, while enabling increased travel speeds and modernizing Colombia’s roads, which the World Economic Forum ranks among the most outdated in the world.
Support for a fund investing in small and mid-market companies in Southeast Asia. Up to $200 million in financing to Navis Asia Fund VIII L.P., which will make investments in small and mid-market companies in Asia in sectors such as education and healthcare.
Financing for middle-income housing in Latin America. Up to $75 million to Peninsula IV Levered-O, L.P., to support investments to construct middle-income residential housing in urban areas in Latin America. The region suffers a severe housing shortage, which is expected to worsen as more and more people migrate to urban areas.
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 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 investment 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.