Foreign Investment Financing
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 Unites States exports.
Last Known Status
Agency: Overseas Private Investment Corporation
Types of Assistance
Direct Loans; GUARANTEED/INSURED LOANS
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. See the OPIC Handbook for more information. The amount of OPIC’s participation in an eligible project may vary, taking into consideration the project’s contribution to the host country’s development, the project’s financial requirements, and the extent to which the financial risks and benefits are shared among the investors and the lenders. OPIC will not generally support more than 75 percent of the total investment.
The terms of such loans will typically provide for a final maturity of three to 15 years, including a suitable grace period during which only interest is payable.
Foreign Assistance Act of 1969, Title IV, Section 234(b), 234(c), 22 U.S.C 2191, et seq.
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 United States-owned foreign entity. Direct loans are reserved for projects sponsored by or significantly involving United States small businesses or cooperatives. Applicants also must meet OPIC's credit underwriting criteria.
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.
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. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Application for Financing is required.
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.
Range of Approval/Disapproval Time
Variable, depending on status and complexity of the project.
Formula and Matching Requirements
This program has no statutory formula.
Matching Requirements: Significant equity investment in the project company by a qualified U.S. sponsor.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Variable, depending on characteristics of the project. OPIC financing is usually in the range of 5-15 years. See the following for information on how assistance is awarded/released: Once OPIC has signed a loan agreement, a borrower may submit a request for disbursement
20 business days before the requested disbursement. The conditions to disbursement must be
satisfied in full before the funds will be disbursed. Most of these conditions are under the
borrower’s control, i.e. providing certificates, documentation, etc., but in some cases
additional security documentation must be drafted by OPIC or outside counsel. OPIC will
work diligently to see that these documents get promptly executed but a high level of
cooperation is needed from the borrower to see that this process goes smoothly.
Post Assistance Requirements
Certain accounting records, drawdowns of all funds, and other information must be available during term of financing and beyond.
71-4030-0-3-151; 71-4074-0-3-151; 71-4075-0-3-151; 71-4184-0-3-151; 71-0100-0-1-151.
(Guaranteed/Insured Loans) FY 08 $1,374,000,000; FY 09 est $2,000,000,000; and FY 10 est $2,350,000,000 - Total Loan Commitments.
Range and Average of Financial Assistance
$200,000 to $400,000,000; small business loans $200,000 to $100,000,000, $23,353,000; non-small business loans $1,166,550 to $400,000,000, $27,067,770.
Regulations, Guidelines and Literature
"OPIC Program Handbook," free. Web site address is http://www.opic.gov.
Regional or Local Office
Alison Germak 1100 New York Avenue, N.W., Washington, District of Columbia 20527 Email: Alison.Germak@opic.gov
Examples of Funded Projects
Fiscal Year 2008: No Current Data Available Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available
Criteria for Selecting Proposals
See USES AND USE RESTRICTIONS and ELIGIBILITY REQUIREMENTS.