OPIC PRESENTATION By A.ELMI.AHMED Private Sector Djibouti (The U.S. Government's Development Finance Institution)

1. OPIC PRESENTATION
By A.ELMI.AHMED Private Sector
 The U.S. Government's Development Finance
Institution
 OPIC mobilizes private capital to help solve critical
development challenges and in doing so, advances U.S.
foreign policy
 OPIC works with the U.S. private sector, it helps U.S.
businesses gain footholds in emerging markets.
 OPIC catalyzing revenues, jobs and growth opportunities
both at home and abroad.
 OPIC achieves its mission by providing investors with
financing, guarantees, political risk insurance, and support
for private equity investment funds.

2. Facilitate U.S. investment and participation in
projects by providing:
 Political Risk Insurance
 Project Finance
 Investment Funds
 Assist in the economic growth by facilitating
private investment in projects sponsored by
private enterprises
 Operate on a self-sustaining basis by
supporting commercial viable projects on
commercial terms
What OPIC
Does
Division of
US
Treasury

3.  Economically sound, commercially
viable, private sector project
 Positive country development effect
 No negative effect on U.S. economy
 Environmentally sound
 Internationally recognized worker
rights enforced
Project
Requirements

4.  Protect against currency
Inconvertibility
Expropriation
Provides comfort to banks, suppliers
and shareholders
OPIC reserves exceed $5 billion
Full faith and credit of the United
StatesWhy OPIC
is an
advantage
to Djibouti
Investors

5. Characteristics of OPIC finance:
 Non- recourse, long-term finance
 Loan amounts up to $250 million
Require 25% U.S. equity stake,
 Can co-finance if we should add
other debt financing but likely
unnecessary
 Djibouti Project will not require
Board approval allowing for a faster
loan approvalInvestment
Finance:

6.  Projects must be controlled by private
sector
 Sound financial plan
 Cash flow adequate to service debt
which will likely be around 6-8
percent
 Ability to complete the project was
begun
Few Key
Points

7. OPIC
Insurance
U.S.
Banks
Local
Financing
Sp. Purp.
Entity
Project
OPIC Loan
Djibouti
Investor
U.S.
Sponsor
Structure
of OPIC
Support

8. Excellent
Growth

9. OPIC supports projects
 OPIC supports projects in energy, agriculture, financial services
and other sectors in more than 150 countries
 While the Overseas Private Investment Corporation is
authorized to operate in 150 developing nations around the
world, and supports projects in a range of industries from
energy to housing, agriculture and financial services
 it focuses its work on regions where the need is greatest
and in sectors that can have the greatest developmental
impact.
 In recent years, OPIC has increasingly focused on projects
that encourage the use of renewable resources.

10. OPIC supports projects
 In addition to longstanding priority regions such as
Sub-Saharan Africa, OPIC responds quickly to shifts in
the political and regional landscape.
 Events of the Arab Spring in 2011 have led to increased
commitments throughout the Middle East and North
Africa (MENA) region.
 OPIC has also strengthened its focus on Southeast
Asia, supporting projects that will deliver
developmental benefits to a region enjoying dramatic
economic growth.