To provide financing for projects sponsored by private
U.S. businesses in developing countries and emerging economies throughout the
world, thereby assisting development goals and improving U.S. competitiveness,
creating American jobs and increasing U.S. exports.
TYPES OF ASSISTANCE:
Guaranteed/Insured Loans. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
To provide financing for investments in developing countries in projects that
contribute to the economic and social development of the host country and have
a positive impact on the U.S. economy. OPIC screens out projects that might
have a negative effect on U.S. employment or the host country's development or
the environment, or would contribute to the violation of internationally
recognized worker rights. Direct loans can only be made to private sector
projects in which there is significant involvement by an U.S. small business.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Guaranteed investor must be
citizen of the United States, a corporation, partnership, or other association
created under the laws of the United States or any State or territory, and
more than 50 percent beneficially owned by U.S. Citizens; a foreign
corporation at least 95 percent owned by such entities; or a 100 percent
U.S.-owned foreign entity. Direct loans are reserved for projects sponsored by
or significantly involving U.S. small businesses or cooperatives. Applicants
also must meet OPIC's credit underwriting criteria.
Beneficiary Eligibility: Project must have
significant participation by a United States sponsor, generally in the form of
at least 25 percent equity ownership. OPIC does not support projects that will
result in the loss of U.S. jobs, that would contribute to the violation of
internationally recognized worker rights or involve illicit payments. OPIC
only supports projects that contribute to the economic and social development
of the host country.
Credentials/Documentation: OPIC Finance
Application; Financial statements; OPIC sponsor disclosure report; other
applicable information on operations of U.S. investor, and project business
plan. A bilateral agreement between the United States and the host country
government must be in place before OPIC can provide loan guaranties in a
country. In some cases, special foreign government approval is required before
financing can be provided.
Pre-application Coordination: None. This program is
excluded from coverage under E.O. 12372.
Application Procedure: Application for Financing
is required.
Award Procedure: OPIC conducts extensive due
diligence and project analysis. Project must be approved internally and meets
OPIC's credit, policy and legal criteria. Loan guaranty is issued directly to
the lender by OPIC, in conjunction with OPIC entering into financing
documentation with the borrower, U.S. sponsor and other parties. Direct loan
is made directly to the project company.
Deadlines: None.
Range of Approval/Disapproval Time: Variable,
depending on status and complexity of the project.
Appeals: Not applicable.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Significant
equity investment in the project company by qualified U.S. sponsor.
Length and Time Phasing of Assistance: Variable,
depending on characteristics of the project. OPIC financing is usually in the
range of 5-15 years.
POST ASSISTANCE REQUIREMENTS:
Reports: Projects submit quarterly and annual
reports on operations and capital spending, and such other reports as OPIC may
call for.
Audits: OPIC representatives monitor projects
closely and may visit project and interview management. Financial statements
generally in accordance with the United States generally accepted accounting
practices must be submitted for OPIC monitoring.
Records: Certain accounting records,
drawdowns of
all funds, and other information must be available during term of financing
and beyond.
Obligations: FY 01 $7,000,000 in subsidy
obligations supported $991,000,000 and in FY 02 est $19,000,000 in subsidy
obligations supported $905,000,000 in loans and guaranteed loans; and in FY 03
an est $19,000,000 in subsidy obligations is expected to support $950,000,000
in direct loans and guaranteed loans.
Range and Average of Financial Assistance: From
$10,000,000 to $400,000,000; For small business loans, from $100,000 to
$29,500,000; $6,300,000. For non-small business loans: From $40,950,000 to
$190,000,000. Average: $9,000,000.
Over the past 30 years, OPIC, a self- sustaining agency, has supported $142
billion of investment overseas that will generate $64 billion in U.S. exports
and create nearly 253,000 American jobs. In 2001, OPIC had a net income of
$215 million. Additionally, OPIC supports sustained development and
international trade while solidifying free markets and operates in
approximately 140 countries. Projects insured or financed in 2001 alone are
expected to create approximately 5,562 direct jobs in developing and emerging
markets, while generating $200 million in host government revenues.
REGULATIONS, GUIDELINES, AND LITERATURE:
"OPIC Program Handbook," free. Web site address is http://www.opic.gov.
INFORMATION CONTACTS:
Regional or Local Office: None.
Headquarters Office: Information Officer,
Overseas Private Investment Corporation, 1100 New York Ave., NW., Washington,
DC 20527. Telephone: (202) 336-8799. For program information by electronic
mail: OPIC@opic.gov.
Web Site Address: http://www.opic.gov
EXAMPLES OF FUNDED PROJECTS:
Examples of financed projects include cellular telephone
networks, retail petroleum projects, electric power generation projects, small
business transactions, and manufacturing and agricultural ventures.
CRITERIA FOR SELECTING PROPOSALS:
See USES AND USE RESTRICTIONS and ELIGIBILITY
REQUIREMENTS.
