This checklist will help you determine whether you and/or your company may be eligible to apply for OPIC financing.
For a project to be eligible to apply for OPIC financing, it must include the meaningful involvement of the U.S. private sector, most often by significant ownership of the investment. Please click here for more information about how this requirement may be met.
For projects with government shareholding participation, 50% of the overseas venture should be held by firms or persons from the private sector, or less if it is contractually agreed that management will remain in private sector hands and there is a strong showing of direct U.S. involvement in other respects.
All projects must be within the demonstrated competence of the proposed management, which must have a proven record of success in the same or a closely related business as well as a significant continuing financial risk in the enterprise. Historical financial statements are required to demonstrate a proven track record of success.
Investors must demonstrate their capability to contribute sufficient equity to the project so that excessive leverage does not jeopardize the project’s financial viability. Although the financial structure may vary with the nature of a specific business, the percent of total project cost funded in debt, including OPIC’s loan, is typically limited to 50% for a new project, with the remaining 50% funded in equity capital, grants, or fully-subordinated debt capital. Higher leverage is possible if circumstances warrant (e.g., an expansion of a profitable borrower, or a project with a long-term off-take agreement, such as a power plant), though may not exceed 75% of project cost.
COUNTRY & POLICY CRITERIA
OPIC is authorized to do business in more than 160 developing and post-conflict countries. From time to time, statutory, policy, or portfolio constraints may limit the availability of OPIC programs in certain countries. For more information, please visit Where We Work.
Projects must exhibit positive host country benefit and comply with the agency’s labor, environmental, social and human rights policies and standards. For more information about these policies and U.S. economic impact—including categorical prohibitions— visit our Office of Investment Policies page. For more information about OPIC policies pertaining to the environment, worker and human rights, and U.S. economic impact—including categorical prohibitions— visit our Office of Investment Policies page.
OPIC complements, not competes with, private sector lenders. If a private sector lender is willing to provide financing for a project on commercially-viable terms, then OPIC requires the project sponsor to utilize a private sector provider. For those projects that are unable to identify adequate commercial financing, OPIC looks to prioritize its limited resources to support those projects that will generate significant development impact in the investment country.