OPIC & T ELECOM

Helping U.S.

Companies Make

the Connection

As developing countries open

their telecom sectors to foreign

investment, U.S. telecom

companies are strongly

positioned to take advantage

of these opportunities. Yet,

despite superiority in

technology and expertise, U.S.

telecom companies will face

obstacles in these new and

challenging markets. With the

Overseas Private Investment

Corporation as a partner, many

U.S. telecom companies have

been able to overcome the

obstacles, using OPIC’s political

risk insurance and long-term

financing. 

Insuring

Telecom 

Projects

Using OPIC's political risk insurance,

many U.S. telecom companies have

been able to enter markets in

countries where political risks make

investors wary.

OPIC can provide insurance against

(i) an investor’s inability to convert

local currency into dollars and to

transfer such dollars to the U.S.; (ii)

expropriation or confiscation of the

investment by the foreign government;

and (iii) political violence. Coverage is

available for equity investments, parent

company and third-party loans,

capital markets financing, consigned

inventory or equipment, technical

assistance agreements, and other

forms of investment. 

Financing

Telecom

Projects

In many emerging markets, U.S.

commercial lenders are not yet willing

or able to provide the level of financing

required. By providing loans for

telecom projects sponsored by U.S.

businesses, OPIC's finance program

can help U.S. telecom companies

take advantage of opportunities in

new and growing markets. 

OPIC can provide financing on a

project or corporate finance basis.

Rather than relying on sovereign or

sponsor guaranties, project finance

seeks repayment from the revenues

generated by the project itself. Corporate

finance relies on an existing corporate

entity, other than the project company,

to support debt repayment. 

T H E O VERSEAS P R I V A T E I NVESTMENT C ORPOR ATION

OPIC Supports U.S.

Telecom Projects Around

the Globe

c Argentina: $175 million in OPIC insurance

to Citibank for its financing to support a

mobile cellular telephone system operated by CTI of Argentina. OPIC also lent

$200 million to the project. Project sponsors

include GTE Mobile Communications

International, Inc., AT&T and TCW. 

c India: $37 million in OPIC insurance for

Motorola to establish a paging project

in India's commercial and high-tech

centers of Bombay and Bangalore.

c Lithuania: Two OPIC loans totalling $28

million and $15 million for the Omnitel

cellular telecom project, sponsored by

Lithuanian-Americans and Motorola, that

is providing cellular services to more

than 90 percent of the country.

c Paraguay: $34 million of financing

from OPIC for Millicom International to

establish a cellular market.

c Russia: $16 million in OPIC insurance

to a small business, MCT Investors, L.P.,

to install 900 GSM cellular project networks in two Russian cities, serving to

enhance and upgrade local communications systems.

c Uganda: $500,000 in OPIC insurance to

the Africa Growth Fund, L.P., for its investment in Afsat Communications, Ltd.’s VSAT

satellite technology project that provides

high quality, digital links. 
The OPIC Telecom

Record c Experience: $3.4 billion

in insurance and loan

commitments, with 90

percent of this support

since 1990.

c Portfolio Depth: 111

telecom projects in 37

countries, including

Russia, Brazil, Hungary,

Argentina, Venezuela,

Dominican Republic,

Ukraine, India,

Indonesia, and Poland.

c Support: Up to $400

million in combined

loans and insurance

available per project.

For information on OPIC financing

and insurance coverages, investor

or project eligibility or to obtain

application forms, visit OPIC's

website at w w w.opic.gov o r contact

OPIC InfoLine at 202-336-8799.

For documents by fax, contact OPIC

FactsLine: 202-336-8700. c

Overseas Private Investment Corporation

1100 New York Avenue, NW

Washington, DC 20527

202-336-8400

General information

OPIC InfoLine: 202-336-8799

Information via the Internet: www.opic.gov

What is OPIC?

OPIC is a self-sustaining U.S. government

agency that encourages private investment

in some 140 developing nations and

emerging markets worldwide. OPIC’s

political risk insurance and financing are

available for financially sound new

investments, privatizations, expansions

and modernizations of existing plants

that promise significant benefits to the

social and economic development of the

host country and foster private initiative

and cooperation. OPIC will not support

projects that could result in the loss of U.S.

jobs, adversely affect the environment, or

contribute to violations of internationally

recognized worker rights. OPIC gives

preferential consideration to projects sig-

nificantly involving U.S. small businesses

or cooperatives.

Since 1971, OPIC has supported

$121 billion worth of investments

that will generate $58 billion in U.S. exports and create more than

237,000 American jobs.

OPIC CAN

HELP U.S.

COM PANIES

CONNECT T O

NEW

T ELECOM

MARKETS

T ELECOM

OPIC