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OPIC financing takes the form of a structured senior loan to the fund. The standard terms and conditions of OPIC’s loan reflect market conditions and enhance alignment between itself, limited partners (“LPs”), and general partners (“GPs”). 

Loan Summary Terms[1]

  • Loan amount: The loan amount may range from a commitment of $25 million to $200 million, but will be limited to 25% of a fund’s total capitalization, as determined by OPIC.
  • Term: The OPIC loan maturity is co-terminus with a fund’s primary term.
  • Annual fees and interest: No annual fees and interest payable to OPIC.
  • Facility Interest: OPIC will earn a total Facility Interest that will be at a 1.0% discount to the LP hurdle rate, which includes a Senior Facility Interest of 4%.
  • Profit Participation: OPIC will receive pro rata share of fund profits after the GP catch up is paid (i.e. proportionate to OPIC’s capital contribution). However, in order to offset the financial impact of OPIC’s seniority to LP equity and other fees and expenses, OPIC may cede a portion of its profit participation to LPs (an amount known as the OPIC “tilt”).
  • Seniority: The OPIC loan allows for distributions to equity investors on a pro rata basis with OPIC until the earlier of (a) the time of sale of the fund’s final portfolio asset, or (b) the end of the fund’s primary term, upon which OPIC will go senior in the waterfall until its principal and Senior Facility Interest of 4% have been fully repaid.
  • Events of Default:  Payment default, insolvency, fund termination and material adverse change.
  • Fund Governance:  OPIC provides proportionate consent on reserved matters according to its percentage contribution to the capitalization of the Fund; OPIC is a voting member of the investor advisory committee.
  • Fees & Expenses:  OPIC charges a one-time due diligence fee as well as legal costs related to originating, documenting, and funding the loan. The OPIC loan can be drawn to pay management fees and expenses. 
  • Security: The OPIC loan is unsecured, and is non-recourse to LPs of a fund.
  • Funding:  OPIC funds its senior loan commitments through the sale of US Treasury guaranteed Certificates of Participation (“COPs”) in the U.S. capital markets.
  • Denomination: OPIC financing is denominated in US dollars.


[1] OPIC at its sole discretion reserves the right to consider funds for financing using different terms, such as a higher rate of leverage with an adjusted waterfall that provides more seniority and lower profit participation to OPIC.