OPIC Board of Directors approves $700 million in financing and insurance for projects in developing countries
December 8, 2016
(OPIC)
WASHINGTON – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance institution, today
approved $700 million in new financing and insurance to support four projects.
These private sector-led development projects will invest globally in Asia,
Sub-Saharan Africa, and the Middle East in a variety of sectors including
energy, financial services, transportation, technology, and telecommunications.
“Today, OPIC approved $700 million in support of development projects with the
private sector across the globe,” said Elizabeth L. Littlefield, OPIC President
and CEO. “In the Middle East, we are supporting projects that will help to bring
energy security to the region through the development of natural gas resources.
In Sub-Saharan Africa, we are supporting a project that will help address credit
constraints that local businesses face. And across Asia and Africa, we are
supporting a project that will focus on financial inclusion to target low income
populations and small and medium sized businesses that are historically
underserved by traditional financial services. We look forward to the long-term
positive impact that, together, these projects will have for the people living
in these regions.”
The board of directors’ approval for OPIC support of these projects include:
Up to $100 million in financing to Apis Growth Fund II, L.P. managed
by Apis Partners, LLP. This private equity fund is focused on financial
inclusion and will make investments in financial services across Africa and Asia
in growth regions with large populations that have historically been underserved
by traditional banking and other basic financial services. OPIC’s support will
help provide opportunities to large and widely dispersed low income populations
and small and medium-sized enterprises in these regions. The fund seeks to use
business models facilitated by the internet and technological innovations to
accelerate access to financial services for individuals and SMEs, while
decreasing the cost of service delivery.
Up to $100 million in financing to Helios Credit Partners, L.P.
managed by Helios Investment Partners LLP. This fund seeks to provide senior
secured and second-lien loans to companies in Sub-Saharan Africa that require
capital for growth, acquisitions or capital expenditures, concentrating
primarily on senior credit to small and mid-sized companies. According to the
World Bank, availability of bank lines of credit to African companies is
severely limited and only 20 percent of Sub-Saharan African corporations have
access to bank loans or lines of credit. OPIC’s support will provide catalytic
access to capital for companies that face difficulty obtaining private financing
and will have a developmental impact by investing in a variety of sectors to
include energy, financial services, transportation, logistics, technology, and
telecommunications.
Up to $250 million in political risk insurance in Israel to Noble Energy
International Limited. OPIC political risk insurance will cover the
Insured’s equity investment related to the development of the Leviathan Field,
an offshore gas field that will produce gas for Israel and neighboring
countries. The Leviathan Field development will help transform Israel from an
energy importer to a net exporter over the coming years. OPIC insurance support
will help Israel achieve energy security and reduce its carbon footprint as
Israel’s power companies switch from more costly imported fuel oil and coal to
domestic gas. This project will help mobilize a steady supply of gas for Israel
and its neighboring countries and promote stability in the Middle East.
Up to $250 million in political risk insurance in Jordan to Noble Energy
International Limited. OPIC political risk insurance will enable the Insured
to supply natural gas to Jordan’s National Electric Power Company (NEPCO), the
Jordanian state-owned utility responsible for procuring fuel for power plant
operations. NEPCO’s financial condition, while slowly improving, has suffered
following the suspension of gas supplies from Egypt in 2013. The project will
help Jordan meet its energy demand, which is growing at an average of 6 percent
annually and is expected to double by 2020. OPIC support to this project will
ensure a reliable source of gas at a sustainable cost to NEPCO and help
stabilize NEPCO’s financial position.
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