OPIC­Supported U.S. Investment In Central America

Helps Region Meet Developmental Needs

Historically, OPIC has provided over $2 billion in financing and political risk insurance to over 300

projects in the Central American nations of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,  and Panama. OPIC is currently providing over $470 million in support to projects in the region in sectors 

ranging from tourism and financial services, to manufacturing and energy.

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

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OVERSEAS PRIVATE INVESTMENT CORPORATION 

OPIC Board Approved

Guaranties for Two New 

Global Lending Facilities

Targeting Latin America and

CAFTA-DR Countries

OPIC's Board of Directors approved 

$250 million in guarantees for a

lending facility that is enabling 

Wachovia Corporation of Charlotte, North Carolina, to expand its lending in emerging markets, with a

focus on Latin America and the signatory countries of Central America­ Dominican Republic­United States 

Free Trade Agreement (CAFTA­DR). 

Primarily, Wachovia is using the facility to make loans to correspondent 

banks in OPIC­eligible countries,

which then provide loans to small and 

medium­sized businesses, middle­mar­ ket businesses, homeowners and consumers.

Additionally, the Board of Directors 

approved $350 million in financing for

a lending framework that is enabling 

National City Bank to expand its lending in emerging markets, with a focus 

on housing construction loans in signatory countries of the CAFTA­DR.

Of the $350 million in new OPIC 

financing, $100 million will be used 

for housing construction loans for lowand middle­income housing, with a

special emphasis on CAFTA­ eligible 

countries. As well, at least 60 percent 

of the framework's loans will be

required to support small and medium­ 

sized enterprises or residential mort­ 

gages. In addition to Latin America, National City will focus on member

banks in Central and Eastern Europe.

"This new framework with National 

City will enable OPIC to mobilize

capital to finance the expansion of

existing businesses and the creation 

of new ones, which will, in turn,

generate thousands of jobs in emerging markets," said OPIC President 

and CEO Robert Mosbacher, Jr. "Its 

emphasis on housing construction in 

CAFTA countries, in particular, will

result in the provision of much­needed credit for a sector vital to the 

region's economic growth." 

OPIC-Supported Loans 

Facilitate Mortgage Lending in

Central America

OPIC has approved a $15 million loan to 

Banco Lafise S.A. of Honduras and a

$10 million loan to Bancentro S.A. of

Nicaragua for the financing of mortgage

loans for low­ and middle­income house­ holds in these countries.

In both countries, these banks 

will originate mortgage loans to 

low and middle income borrowers, then will use the proceeds of

the OPIC credit facilities ($15 

million for Honduras and $10 

million for Nicaragua) to refi­ nance some of these mortgage

loans using long­term funding.

In Honduras, the bank will originate 

mortgage loans valued between $9,000 

and $27,000, while in Nicaragua, the

value of homes will be priced from 

$10,000 to $30,000.
March 2007

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 $177 billion worth of investments that have generated over $71 billion in U.S. exports and supported more than

271,000 American jobs. For more information please go to www.opic.gov.

OPIC-Supported Funds 

Promote Economic Growth

OPIC has committed up to $135 million 

in financing for three new private equity 

investment funds designed to increase

private sector investment in Central 

America.

The Darby­BBVA Latin American 

Private Equity Fund is intended to 

mobilize private sector investment capi­ 

tal for projects in Latin America. The fund is managed by Darby 

Overseas Investments Ltd. and Banco 

Bilbao Vizcaya Argentaria, S.A.. Darby, a Washington DC based leading emerging markets private equity investment 

firm is a member of Franklin Resources,

Inc., a global investment organization 

operating as Franklin Templeton 

Investments.

The second fund, the Darby Pro­Banco 

Fund, intends to make equity invest­ 

ments in financial services, financial 

intermediaries, banks and non­banks 

throughout Central America. The fund is

also managed by Darby Overseas 

Investments Ltd.

The third fund, managed by Palador

Realty, an affiliate of Paladin Realty 

Partners of Los Angeles, is designed to 

deploy capital for the development of

housing and other projects in Latin 

American markets where demand dra­ matically exceeds supply, many of

which are capital­constrained. The fund 

will represent one of very few sources 

of investment capital for housing within 

the region.

U.S. Small Business Helps Increase Availability of LowCost Homes in Honduras

OPIC is providing a $9.2 million loan to a Honduran subsidiary of a U.S. company for the lease­purchase financing of 1,400 low­cost homes in the 

Honduran cities of San Pedro Sula and Villaneuva. The project also features an OPIC small business insurance 'wrap.' 

The homes will be occupied by employees of various companies that lease

space in an industrial park located in the San Pedro Sula region of

Honduras. Currently, the investors are building the homes, financing this 

construction through equity. The OPIC­supported loan will fund 15­year

mortgage­style lease­purchase contracts between employees of the industri­ 

al park and the park's owner.

Enabling A U.S. Small Business To Expand

OPIC political risk insurance is enabling a U.S. small business to expand 

its advertising operations in Central America to Guatemala, Nicaragua and 

Honduras.

OPIC is providing over $7 million 

in political risk insurance to Colite 

Outdoor of West Columbia, SC, to 

cover the construction of billboards 

in residential and commercial areas 

of the countries' capital cities.

The project is helping those countries standardize billboard construction, as well as enhance their quali­ 

ty, durability and appearance.

Advertising space on the billboards 

is being sold to American compa­ nies operating in the countries,as well as to local businesses.

OPIC, through a prior contract, had already helped Colite Outdoor establish operations in Costa Rica, El Salvador and Panama. 

Colite Outdoor is helping standardize billboard construction in Central America, while

also enhancing billboard quality, durability  and appearance.. 

ACCESS TO OPPORTUNITY IN CENTRAL AMERICA AND THE

CARIBBEAN: An International Investment Conference Organized by 

OPIC will be held May 15­17, 2007 in San Salvador, El Salvador.  To learn more about the conference and to register, please visit 

www.trademeetings.com