DFC Approves Nearly $900 Million for Global Development Projects
March 12, 2020
(DFC)
First projects approved by DFC’s Board of Directors will address critical
needs in Africa, Indo-Pacific, and Latin America
WASHINGTON – The Board of Directors of U.S. International Development Finance
Corporation (DFC) today approved $881 million in financing and political risk
insurance for multiple projects that will advance development around the world.
These projects mark the first approved by DFC’s Board since the agency’s
official launch.
The projects approved will expand access to clean water, bolster marine
conservation, and improve the availability of secure telecommunications. Two of
the projects approved also advance DFC’s 2X Women’s Initiative, which aims
to support investment in projects that are owned by, led by, or empower women
across the developing world and advances the Administration's Women's Global
Development and Prosperity (W-GDP) Initiative.
“The first projects approved by DFC’s Board underscore the agency’s
commitment to investing in development,” said DFC Chief Executive Officer Adam
Boehler. “By addressing some of the most critical needs in the developing
world—from clean water to safe and secure telecommunications and women’s
economic empowerment—these investments will change lives.”
Read Boehler’s report to the Board here.
Projects approved include:
Improving the availability of secure telecommunications across the
Indo-Pacific: A $190 million loan to Nevada-based Trans Pacific Networks (TPN)
will support the world’s longest telecommunications cable. It will directly
connect Singapore, Indonesia, and the U.S. and have the capability to serve
several markets in Southeast Asia and the Pacific. The 5G-enabling digital
infrastructure will improve the availability of secure international bandwidth
capacity to the Indo-Pacific.
Expanding access to clean water and sanitation around the world: A $100
million loan to WaterEquity’s Global Access Fund will finance household-level
access to clean water and sanitation across Africa, the Indo-Pacific, and Latin
America. This project advances the 2X Women’s Initiative to economically
empower women, who are disproportionately impacted by poor access to water and
sanitation in the developing world.
Bolstering marine conservation in Kenya and Saint Lucia: $250 million and
$100 million in political risk insurance will support “blue bonds” that
bolster coastal economies in Kenya and Saint Lucia, respectively. The projects
will establish long-term sources of funding for critical marine conservation
activities in coordination with The Nature Conservancy.
Investment in Mexico: DFC’s investment with IEnova—led by a female CEO
and CFO—is the largest energy investment under the 2X Women’s Initiative.
The $241 million in long-term debt financing will support a portfolio of assets
that were developed by IEnova. The project underscores the positive role of
private investment in the Mexican energy and power markets when it is allowed to
develop.
Each of these investments is subject to Congressional notification.
DFC is a new U.S. Government agency that modernized the U.S. Government’s
development finance capabilities—primarily the Overseas Private Investment
Corporation (OPIC) and the Development Credit Authority (DCA) of the United
States Agency for International Development (USAID). Equipped with a more than
doubled investment cap of $60 billion and new financial tools, DFC has more
resources and flexibility to invest in development, advance U.S. foreign policy,
and generate returns for the American taxpayer.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.