Opic presentation (The U.S. Government's Development Finance Institution)


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

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  • while the new five-star Djibouti Palace Kempinski—owned by Nakheel, a Dubai Worldcompany—has given a boost to tourism and business. This is a possible Investor and I can discuss off take with him… How much Energy do they use?
  • Opic presentation (The U.S. Government's Development Finance Institution)

    1. 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. 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. 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. 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. 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. 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. 7. OPIC Insurance U.S. Banks Local Financing Sp. Purp. Entity Project OPIC Loan Djibouti Investor U.S. Sponsor Structure of OPIC Support
    8. 8. Excellent Growth
    9. 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. 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.