OPIC Board of Directors Approves Over $1 billion in Financing for U.S.-led Development Projects Worldwide
September 17, 2015
(OPIC)
New projects will support private sector development in energy and inclusive
access to finance
WASHINGTON – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s Development Finance Institution, today
approved new financing and insurance support to private sector-led development
projects in Africa and Asia. Projects approved for planned commitment include
large-scale renewable power generation, increased lending to underserved
populations to spur inclusive economic growth, and partnerships to modernize and
construct stabilizing energy infrastructure in fast-emerging economies that
currently lack reliable electricity.
“The projects approved by OPIC today are significant in both vision and volume,”
said Elizabeth Littlefield, OPIC’s President and CEO. “Both YES Bank and
Standard Bank are lenders with a broad reach in developing markets, extending
the impact OPIC can make through local partnerships. And the new clean power
generation led by SolarReserve as well as sweeping efficiency modernizations
from K-Electric exemplify the exciting realities of energy production and
delivery in the 21st century. These projects show the transformative impact that
the U.S. private sector can have in the developing world, and we look forward to
their successes in supporting clean power and inclusive growth in Asia and
Africa.”
The approved projects include the following:
SolarReserve, Inc. in South Africa – Up to $400 million in financing
Santa Monica, Calif.-based SolarReserve, alongside co-sponsor and lead developer
ACWA Power, will use an OPIC investment guaranty to help construct and operate
the 100 megawatt Redstone concentrating solar power plant in Northern Cape,
South Africa. OPIC financing supports the agency’s key role in President Obama’s
Power Africa initiative, which aims to address critical power access needs
across sub-Saharan Africa. SolarReserve’s development of the project also helps
fulfill the South African government’s renewable energy goals.
Standard Bank of South Africa – Up to $250 million in financing
Standard Bank will use an OPIC-supported facility to finance power generation
and infrastructure projects in OPIC-eligible countries in Sub-Saharan Africa.
The demand for electricity across Africa is critical, and OPIC’s support to
Standard Bank helps fulfill an agency commitment to President Obama’s Power
Africa Initiative, in which OPIC financing and insurance to private sector
developers play a key role.
YES Bank, Ltd. in India – Up to $245 million in financing
YES Bank will use an OPIC investment guaranty to increase lending to micro,
small and medium enterprises in underserved markets across India, including
women and rural borrowers. The collaboration between YES Bank and OPIC was first
explored during OPIC President and CEO Elizabeth Littlefield’s visit to India
with U.S. President Barack Obama earlier this year. The lending strategy of this
partnership will help YES Bank fulfill goals to reach underbanked areas in the
north and east of India as well as provide credit access to a growing
entrepreneur class that currently lacks financial tools.
K-Electric, Ltd. in Pakistan – Up to $250 million in financing
K-Electric will use an OPIC investment guaranty to undertake a comprehensive and
transformative power grid upgrade program in Karachi, Pakistan. Electricity
outages and shortfalls are recognized as a constraint to economic growth and
stability in Pakistan, and the K-Electric grid improvement project will
significantly improve reliability and efficiency of the power network in KE’s
licensed area, which extends to parts of Baluchistan and Sindh in addition to
Karachi. OPIC’s support in conjunction with a direct loan from Citibank,
Pakistan to K-Electric’s project will support new transmission capacity,
loss-reduction measures, and an innovative smart grid initiative to more
accurately distribute and utilize existing power.
And in a notational OPIC Board of Directors vote held in August between
scheduled quarterly meetings, the following projects were approved:
Apollo Towers in Burma – Up to $150 million in political risk
insurance
Apollo Towers will use OPIC political risk insurance and up to $250 million in
financing approved earlier this year to develop a network of 2,500
telecommunications towers across Burma – one of the last places in the world
without widespread infrastructure for this technology. Only three percent of
Burma’s 50 million residents had access to mobile phones in 2011. OPIC’s support
to Apollo Towers is expected to create the infrastructure that will contribute
to a goal of 75% mobile access for Burma’s people by 2016. In addition to
bringing widespread information access to millions of people, OPIC’s support to
Apollo Towers will provide a valuable demonstration effect for development in
this newly-opened market.
BancABC in Southern Africa – Up to $200 million in financing
BancABC – the Southern African banking platform of Atlas Mara, Ltd. – will use
OPIC funds to scale up its SME loan portfolio, increase on-lending for financial
inclusion products, and invest in information technology upgrades to quicken
implementation of its new financial technology and mobile banking initiatives.
Up to $130 million of the OPIC funds is dedicated toward financing strategic
acquisitions to expand Atlas Mara’s platform, increase its presence in
sub-Saharan Africa, and bolster its developmental impact reach.
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