OPIC Board of Directors Approves Risk-Sharing Frameworks with Citi
March 24, 2014
(OPIC)
WASHINGTON – In a quarterly meeting March 20, the Overseas Private Investment
Corporation’s (OPIC) Board of Directors approved two framework agreements that
will align OPIC with Citi, the leading global bank, in sharing credit risk for
development financing in overseas projects. The global risk-sharing frameworks
cover both commercial lending and a new inclusive finance facility.
The two agreements provide OPIC’s guarantee of loans made by Citi to borrowers
in in OPIC-eligible countries around the world. Beginning in 2003, Citi and OPIC
developed a Risk Sharing Program wherein OPIC provides a comprehensive partial
guarantee for loans originated and extended by Citi in the emerging markets.
During a decade-plus partnership, Citi and OPIC have executed 16 different
frameworks totaling $2.8 billion in guarantee capacity.
Loans previously guaranteed by OPIC through Citibank have supported large-scale
development projects in underserved regions to build the infrastructure
necessary for growth as well as $290 million in funding to networks of
microfinance lenders to foster the entrepreneurs who form the foundation of an
emerging economy. These new framework agreements expand this successful
partnership between OPIC and Citi with a $550 million global loan facility for
eligible corporates and financial institutions and a $220 million loan facility
for global inclusive finance.
“The cooperation we’re extending with Citi is one that has far-reaching effects
in several aspects,” said Elizabeth Littlefield, OPIC’s President and CEO. “OPIC
has a history of partnering with commercial lenders to enter emerging markets in
places around the world. By putting OPIC’s guarantee behind Citi’s loans,
borrowers in these markets will now have access to the crucial lending needed to
propel societies and economies to the next level.”
“Citi is excited to expand our partnership with OPIC to further achieve common
objectives in economic development and financial inclusion. The $220 million
Inclusive Growth agreement will promote business development, expansion and
access to finance, supporting a wide range of institutions and strategies to
expand market access, secure more sustainable and inclusive supply chains,
offering diverse financial services to small producers, distributors and
underserved communities around the world”, said Bob Annibale, Global head of
Microfinance and Community Development at Citi.
“We are pleased to further strengthen the collaboration with OPIC and support
its mission; with the new agreements, OPIC and Citi will be in a position to
support new developmental investments of Citi’s clients in many emerging
countries around the world,” said Valentino Gallo, Managing Director and Global
Head of Export & Agency Finance at Citi.
“Partnering with a proven global institution like Citi allows OPIC to act
nimbly. We serve U.S. foreign policy aims and address development challenges in
places around the world where Citi already operates. And our risk-sharing
agreements today with Citi means OPIC can move more swiftly to achieve our
goals,” Littlefield added.
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