OPIC has approved more than $600 million to support projects in Mexico.

Supporting Private Sector Investment in Mexico

OPIC is a U.S. government agency that helps U.S. businesses invest overseas, fosters economic development in new and emerging

markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy.

Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. Since 1971,

OPIC has supported more than $164 billion worth of investments that have generated over $69 billion in U.S. exports and supported more than

264,000 American jobs. For more information please go to www.opic.gov.

February 2005

OPIC Highlights

Office of External Affairs

1100 New York Avenue, NW

Washington, DC 20527

202-336-8400

www.opic.gov

OVERSEAS PRIVATE INVESTMENT CORPORATION

OPIC Support Bolsters

New Opportunities for

Mexican Businesses

Securing loans can be difficult,

especially for small businesses.

OPIC is helping to increase the

pool of available capital to businesses in Mexico through a direct

loan and a

unique credit

risk-sharing

program.

OPIC has

entered into a

$200 million

guaranty

framework

agreement by

which it will

share credit

risk with

Citigroup subsidiary Banamex,

S.A. in downstream project loans

in Mexico. Specifically, the facility will focus on middle market

lending, corporate lending and the

microfinance sector. This is the

first such OPIC project in Mexico.

Additionally, OPIC is extending a

$1 million direct loan to

Financiera Compartamos, which

will in turn be used to make thouOPIC-Supported Funds

Promote Economic Growth 

OPIC has committed up to $120

million in financing (up to $60

million each) for two new private

equity investment funds intended

to support sectors of the Mexican

economy vital to its continued

growth: those benefiting from the

country's growing purchasing

power and power generation with a

focus on renewable energy.

The Baring Mexico Private Equity

Fund II, with a target capitalization

between $150 and $200 million,

will invest in a diversified portfolio

of medium-sized companies operating in Mexico. Of particular

interest are businesses in sectors

expected to benefit from the

increasingly domestic purchasing

power and relatively young

Mexican population, including

consumer goods, financial services,

housing, health care and entertainment.

OPIC selected Baring Latin

America Partners LLC (BLAP) as

investment manager of the fund.

BLAP is currently serving as manager of two other OPIC-supported

funds, one in Latin America and

one in Africa.

The second fund will be Conduit

Capital Partner LLC's third Latin

American fund. The fund will

invest in independent power projects (IPPs) in Latin America and

the Caribbean, with a focus on

renewable energy and Mexico. The

IPPs will consist primarily of

electric power-generating facilities

and follow one of three strategies:

greenfield construction, development equity or acquisitions requiring expansion capital. The fund

has a target capitalization of $200

million.

OPIC Financing Promotes

Energy Infrastructure

Development

OPIC has pledged up to $250 million in financing for the Mexican

affiliate of a U.S. company to

finance its working capital

needs and issue letters of

credit when it builds energy infrastructure projects

in Mexico.

The OPIC financing will

guaranty a credit facility

to commercial banks on

behalf of ICA-Fluor, a

Mexican joint venture

company that provides

engineering procurement

and construction services,

in the energy sector, to finance its

working capital needs on construction contracts in Mexico on a

longer term tenor than is generally

available.

These contracts will generate considerable tax revenues for Mexico

and catalyze significant local

expenditures on goods and services.

A loan to Financiera Compartamos

will be used to make micro-credit

loans in Mexico, expanding the base

of Mexican entrepreneurs.

sands of micro-credit loans in

Mexico, expanding the base of

Mexican entrepreneurs.

Boston-based ACCION

International, a pioneer microlender

in emerging markets, is the U.S.

sponsor of the project. ACCION will

provide loan and portfolio monitoring, as well as technical assistance

and oversight of Compartamos.
OPIC Loan Supports Home

Improvements 

Recognizing that adequate housing

is the most basic unit of a country’s infrastructure, and a necessary

foundation for its economic development, OPIC is providing $2.5

million to support home improvements in Mexico.

The OPIC direct loan, to

Maryland-based CHF International

(Cooperative Housing Foundation),

is helping to establish a new onlending facility to provide loans for

home improvements in Mexico,

including the provision of safe and

adequate housing for workers

along the U.S.-Mexico border.

Proceeds of the loan will go to

Mexican non-profit organizations,

which in turn will lend money to

individual Mexicans to finance

home improvements. CHF will

also offer educational programs for

potential lenders and borrowers.

U.S. SMALL BUSINESS USES OPIC LOAN TO BUILD 

PREFABRICATED HOMES

Prefabricados y Modular de Monterrey (PyMM) will use a $10 million OPIC loan to expand production of pre-made

concrete homes from its manufacturing facility in Monterrey, Mexico. PyMM, a wholly-owned subsidiary of Texasbased Modular Prefab-USA, LLC, has sold more than 700 of the

homes during its first four years of production, and has six projects

under way. The homes cost approximately $US 15,000 apiece, and

will be sold to low-income buyers through Mexico's Infonavit program, which operates in similar fashion to Fannie Mae in the U.S.:

Infonavit collects payroll deductions from employers on behalf of

employees that can be used for down payments on homes and which

enables Infonavit to provide long-term mortgage financing when

those employees are ready to purchase their homes.

The project is the first to be processed using a new fast-track

approach created under a framework agreement signed by OPIC and

Interlink Capital Strategies, a Washington, D.C.-based financial consultant.

Prefabricados y Modular de Monterrey (PyMM) will use

a $10 million OPIC loan to help Mexico meet a growing

demand for low-income housing.

We welcome OPIC's participation

in fostering joint ventures between

Mexican and U.S. companies, which

will enable Mexico and the U.S. to

deepen an already thriving economic

relationship. It will provide U.S.

small and medium-sized entrepreneurs access to the financial

resources they need to enter the

Mexican market.

President Vicente Fox 

Free trade is an incredibly important

part of making sure the environment is hospitable to the formation

of small businesses. And trade with

Mexico is an integral part of making

sure that our hemisphere is safe,

secure and prosperous. A strong

Mexico is in our nations' best interest. 

President George W. Bush

OPIC Highlights is published by Overseas Private Investment Corporation 1100 New York Avenue, N.W. Washington, D.C. 20527

U.S. SMALL BUSINESS

USES OPIC LOAN 

FOR WINTER FARMING

PROJECT IN MEXICO

A $3.3 million OPIC loan will help

a U.S. small business to produce

vegetables during the winter growing season in Mexico for distribution in U.S. markets.

Southern Valley Fruit & Vegetable,

Inc. of Norman Park, Georgia, will

establish a winter division that will

grow, package, and ship cucumbers, squash, eggplant and zucchini

grown in Yucatan to the company's

U.S. headquarters for distribution

throughout U.S. markets. Through

a phased approach, the project will

ultimately bring a total of 900

acres under cultivation by the end

of 2007.

The project will enable Southern

Valley to increase its production of

winter crops to better serve an

expanding U.S. customer base that

includes the major chain stores,

wholesalers, and food distribution

companies throughout the country.

The project will support U.S.

demand for produce during

months when U.S. growers cannot

meet this demand.

Southern Valley is a family-owned

business with 23 years experience

in vegetable farming.