Debt Financing

Project Ownership

In fulfilling its mission to support developmental U.S. private investment in developing and post-conflict countries, OPIC requires significant U.S. participation in the projects it supports. U.S. significant participation in a project can be achieved with either an equity or a long-term debt investment. OPIC can provide financing for overseas investments that are wholly owned by U.S. companies or, at a minimum, have an ownership interest of at least 25 percent. If a U.S. bank provides a meaningful amount of non-credit enhanced long-term debt for the project, that can be sufficient to be eligible for OPIC financing. Exceptions to the amount of U.S. investment requirement may be made in cases where U.S. brand name franchisers, operators, or contractors are significantly involved in the project on a long-term basis.

Normally, more than 50 percent of the voting shares of the overseas venture will be held by firms or persons from the private sector. However, financing may be offered to an entity in which government ownership of voting shares represents the majority, if it is contractually agreed that management will remain in private hands, and there is a strong showing of direct U.S. involvement in other respects.