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Summit for US-<strong>In</strong>dia Trade & Economics:<br />
SUITE 2011<br />
<strong>OPIC</strong> Financial Solutions for <strong>In</strong>vesting in <strong>In</strong>dia<br />
Iman Tariq Kennerly<br />
Overseas Private <strong>In</strong>vestment Corporation<br />
An Agency of the U.S. Government<br />
1
Agenda<br />
<strong>OPIC</strong> Background<br />
<strong>OPIC</strong> Financial Solutions<br />
<strong>OPIC</strong> in <strong>In</strong>dia<br />
Contact <strong>In</strong>formation<br />
An Agency of the U.S. Government<br />
2
Overseas Private <strong>In</strong>vestment Corporation<br />
Background<br />
An Agency of the U.S. Government<br />
3
Our Organization<br />
As the U.S. Government’s premier development finance institution, <strong>OPIC</strong> mobilizes<br />
the participation of U. S. private capital to support sustainable economic<br />
development in emerging markets.<br />
Shading denotes<br />
<strong>OPIC</strong>-eligible countries<br />
<strong>OPIC</strong> currently manages a $14B portfolio of projects in over 150 countries and<br />
operates on a self-sustaining basis at no net cost to the American taxpayer.<br />
An Agency of the U.S. Government<br />
4
Administration Development Priorities<br />
<strong>OPIC</strong> is uniquely positioned to support the administration’s new development strategy<br />
<strong>OPIC</strong>’s Unique Position<br />
Administration Priorities<br />
Foreign<br />
Policy<br />
Development<br />
“We’re changing how we define development…we<br />
need to harness all the tools at our disposal—from<br />
our diplomacy to our trade and investment<br />
policies.”<br />
~President Obama, 9/22/10<br />
<strong>OPIC</strong><br />
US<br />
Business<br />
• Supporting broad-based, sustainable economic<br />
growth<br />
• Proactively targeting specific countries, regions,<br />
sectors, and technologies<br />
• Mobilizing private sector investment<br />
• Elevating development as a central pillar of<br />
national security policy<br />
An Agency of the U.S. Government<br />
5
Our Impact<br />
Over the past 39 years <strong>OPIC</strong> has supported over $188 billion of investment in developing<br />
markets that is projected to support over 274,000 U.S. jobs<br />
<strong>OPIC</strong> By the Numbers*<br />
Total <strong>In</strong>vestment<br />
Supported<br />
$188 billion<br />
$0 $50 $100 $150 $200<br />
U.S. Exports<br />
Supported<br />
(Projected)<br />
$74 billion<br />
$0 $50 $100<br />
Total Projects<br />
Supported<br />
4,000<br />
0 1,000 2,000 3,000 4,000 5,000<br />
U.S. Jobs<br />
Supported<br />
(Projected)<br />
274,000<br />
0 400,000<br />
*Since 1971<br />
An Agency of the U.S. Government<br />
6
<strong>OPIC</strong> Financial Solutions<br />
Products and Policies<br />
An Agency of the U.S. Government<br />
7
Our Solutions<br />
<strong>OPIC</strong> offers innovative financial solutions to support private investors, including debt financing,<br />
insurance, and investment funds<br />
Products Current Portfolio *<br />
• Debt financing<br />
― Ranges from large structured finance to small<br />
business loans<br />
― Loan amounts up to $250M with fixed rate<br />
terms for up to 20 years<br />
― Corporate or limited recourse<br />
― Typically a 60/40 debt to equity ratio<br />
― 1.3x to 1.5x debt service coverage<br />
• <strong>In</strong>surance<br />
― Offers coverage for risk of<br />
expropriation, political violence, and currency<br />
inconvertibility<br />
• <strong>In</strong>vestment funds<br />
― Provides debt that is matched by privately<br />
raised equity to support funds investing in<br />
emerging markets<br />
$16<br />
$14<br />
$12<br />
$10<br />
$8<br />
$6<br />
$4<br />
$2<br />
$-<br />
$14B<br />
$2.3<br />
$2.4<br />
$9.3<br />
Total Exposure<br />
<strong>In</strong>vestment<br />
Funds<br />
<strong>In</strong>surance<br />
Debt<br />
Financing<br />
*As of September 30, 2010<br />
An Agency of the U.S. Government<br />
8
Our Policy Standards<br />
<strong>In</strong>vestors and project proposals must satisfy certain policy criteria to receive <strong>OPIC</strong> support<br />
Eligibility Criteria for <strong>In</strong>vestors<br />
To be eligible for <strong>OPIC</strong> financing and<br />
insurance, applicants must:<br />
Have a commercially viable business plan and<br />
successful track record.<br />
Have U.S. ownership:<br />
— Loans: Borrower must have 25% U.S.<br />
ownership<br />
— <strong>In</strong>surance: Policy Holder must have<br />
>50% U.S. ownership<br />
— Funds: managed by a U.S. manager or<br />
involve U.S. equity investment<br />
Maintain private sector control (
<strong>OPIC</strong> <strong>In</strong> <strong>In</strong>dia<br />
<strong>In</strong>surance and Finance<br />
An Agency of the U.S. Government<br />
10
<strong>OPIC</strong> in <strong>In</strong>dia<br />
*Since 1971<br />
<strong>OPIC</strong> is investing institutional and financial resources in <strong>In</strong>dia.<br />
<strong>In</strong>stitutional Resources<br />
• Opened <strong>OPIC</strong> office in <strong>In</strong>dia<br />
• Peter Ballinger (pball@opic.gov)<br />
• Director, Business Development<br />
• Long term deployment to New Delhi to<br />
focus on Renewable Energy<br />
• Renewable Energy & Clean Technology :<br />
Access to <strong>In</strong>vestment Opportunities in<br />
Emerging Markets Conference<br />
• May 2010 in New Delhi.<br />
• Over 260 participants<br />
• <strong>In</strong>cluding U.S. Ambassador to <strong>In</strong>dia Timothy<br />
J. Roemer, the Government of <strong>In</strong>dia’s Union<br />
Minister of New and Renewable Energy Dr.<br />
Farooq Abdullah, and Dr. Rajendra<br />
Pachauri, chairman of the <strong>In</strong>ternational<br />
Panel on Climate Change<br />
An Agency of the U.S. Government<br />
<strong>In</strong>vestment Exposure<br />
• Since 1974 <strong>OPIC</strong> has invested close to<br />
$2 billion in 127 <strong>In</strong>dian projects<br />
• Current exposure of $277 million with<br />
20 projects<br />
• Robust pipeline including<br />
infrastructure, microfinance, housing<br />
, and agricultural projects<br />
11
<strong>OPIC</strong> Finance in <strong>In</strong>dia<br />
<strong>OPIC</strong> has provided $634 million of financing for investment in <strong>In</strong>dia since 1982<br />
Recent Commitments<br />
• $160 million was committed in FY2009 and<br />
FY2010<br />
• Recent project investments include SME and<br />
microfinance facilities, renewable energy, and<br />
housing finance.<br />
Success Stories<br />
• CEMA Electric - CFL bulb manufacturing<br />
• Husk Power – 36 mini energy generation<br />
facilities<br />
*Since 1971<br />
An Agency of the U.S. Government<br />
12
<strong>OPIC</strong> <strong>In</strong>surance in <strong>In</strong>dia<br />
<strong>OPIC</strong> has insured $1.3 billion of investment in <strong>In</strong>dia since 1974 beginning to ramp up again<br />
Recent Commitments<br />
• Since reopening in <strong>In</strong>dia , <strong>OPIC</strong> has insured<br />
$3.4 million of investment in 4 projects.<br />
• Recent commitments were in housing and<br />
wind energy<br />
Success Stories<br />
• Southern Energy Partners<br />
• Domes <strong>In</strong>ternational<br />
*Since 1971<br />
An Agency of the U.S. Government<br />
13
Contact Us<br />
For more information, please contact:<br />
General <strong>In</strong>quiries<br />
email: info@opic.gov<br />
<strong>OPIC</strong> Main Phone: 202-336-8400<br />
Iman Kennerly<br />
email: ikenn@opic.gov<br />
Phone: 202-336-8586<br />
Enterprise Development Network<br />
www.ednaccess.com<br />
An Agency of the U.S. Government<br />
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