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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 of between 2.0 percent and 6.0 percent, 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.