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Interest rates and loan guaranty fees are generally based on an underlying cost of capital (comparable to U.S. Treasury notes or other U.S. Government-guaranteed issues of similar maturity) plus a risk premium, depending on OPIC’s assessment of the commercial and political risks involved.

In general, OPIC expects that its creditor participation will be on a senior basis, pari passu with the holders of other senior debt, and that it will share in a first lien on fixed assets and any other appropriate collateral. A host-government guaranty normally is not required by OPIC. Other structures will be considered on a case-by-case basis.

Consistent with commercial lending practices, upfront fees range from 1 percent to 2 percent, commitment fees, maintenance fees and cancellation fees may be charged, and reimbursement is required for related out-of-pocket expenses, including fees for outside counsel and the services of experts or consultants.