Though terms and conditions vary by transaction, the basic parameters are as follows:
The loan tenor is usually between 5 and 20 years, with a maximum of 30 years, depending upon the type of project and its debt servicing capability. It is common to allow a “grace” period on principal repayment at the beginning of the term to allow for project completion, however, each transaction will be evaluated on a case-by-case basis. OPIC can tailor flexible disbursement and amortization, although our most common repayment periodicity is made on either a quarterly or semi-annual basis and is driven by the context of each specific project’s cash flow profile.
OPIC loan financings range from $500,000 to $350 million with an average loan size of $5 million to $50 million. OPIC is additionally experienced in working with co-lenders to bring sufficient resources to larger projects.
Interest and fees will vary depending upon the project. A summary of key costs is presented below. Please consult with your OPIC Finance officer for more information.
- Up front Retainer Fee - to cover due diligence costs such as travel to the project site.
- Facility/Origination Fee – a one-time, flat fee usually paid at the time of loan agreement signing or first disbursement.
- Commitment Fee – an annual percentage charged on any undisbursed amount.
- Interest Rate – A negotiated spread over the base-cost of funds.
- Maintenance Fee – an annual fee charged to cover the cost of monitoring the loan.
- Other – the cost of the services of outside consultants or attorneys that may be required by OPIC; the funding costs associated with how the project is funded, either through the US Department of Treasury or via OPIC’s Capital Markets program; and any expenses related to registration or notarization of documents, etc.