OPIC and Renewable Energy

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OPIC Highlights

Office of External Affairs

1100 New York Avenue, NW

Washington, DC 20527

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www.opic.gov

OVERSEAS PRIVATE INVESTMENT CORPORATION

In September 2008 OPIC's Board 

of Directors approved $505 million 

in financing for six new private 

equity funds designed to invest in 

clean and renewable energy projects in emerging markets worldwide. The funds will mobilize a 

total of $1.6 billion in capital for

the sector, representing an historic 

commitment by OPIC to renewable

energy. The summary below provides detail on four of the 

approved funds. FE Global Clean Energy 

Services Fund IV

OPIC is providing up to $55 million in financing to the fund, which 

will invest in renewable energy and 

energy­efficient emission reduction 

projects in Asia, Central and 

Eastern Europe, and Latin 

America. OPIC selected as fund 

manager GEM Management IV 

Corp., an affiliate of FE Clean 

Energy Group, Inc., a leading private equity fund management firm 

focused on renewable energy and 

energy efficiency investments in 

emerging markets. These investments are expected to generate

tradable carbon credits for

Greenhouse Gas emission reductions. The fund has a target capitalization of $250 million.

Middle East & Asia Capital 

Partners Clean Energy Fund II

OPIC is providing up to $50 million in financing to the fund, which 

will invest in a wide spectrum of

renewable energy projects throughout Asia, with an emphasis on 

India, Indonesia, Malaysia,

Pakistan, Philippines, Thailand and 

Vietnam. It will invest in equity, convertible debt and mezzanine 

debt in projects ­ wind farms and 

geothermal production, for example 

­ as well as in manufacturing and 

service companies that serve the 

renewable and biofuels sectors. OPIC selected as fund manager

Middle East & Asia Capital 

Partners Pte., Ltd (MEACP), a private equity platform connecting the 

Middle East and Asia. The fund has

a target capitalization of $150 million. The fund will be raised in par­ allel with the targeted $250 million 

MEACP Clean Energy Fund, which 

will invest in parallel with the fund 

in investments eligible for OPIC

support.

GEF South Asia Clean Energy 

Fund

OPIC is providing up to $100 million in financing to the fund, which 

will invest in companies and projects that support the need for

cleaner forms of energy in the 

region­including those utilizing 

solar, wind, hydropower, biofuel 

and natural gas. The fund will also 

invest in technologies that promote: 

energy efficiency; improved batteries and storage, clean transporta­ 

tion, clean water systems, and envi­ 

ronmental and energy efficient 

buildings. OPIC selected as fund 

manager GEF Management 

Corporation, which has previously

(Continued on back) 

OPIC Supports Renewable Energy Investment

Funds for Emerging Markets Worldwide

OPIC recognizes that sound develop­ 

ment supports both economic growth 

and environmental sustainability.

In 2008, OPIC’s Small and Medium 

Finance Department implemented an 

outreach program that resulted in the 

agency’s consideration of more than 100 

proposals for support of projects totaling $2 billion in every conceivable subsector of renewable energy and sustainable development, including biomass, waste to energy, solar, hydro, geother­ mal, wind, reforestation, water purification, green housing, clean fuels and 

more. While OPIC has financed hydro,

geothermal, clean water, and other sustainable development projects, recent 

commitments include a loan for a 2 

MW photovoltaic power project in 

India, a loan for a project in Liberia to 

remove fallow rubber trees and utilize

the wood chips for biomass power 

plants, a loan to a non­profit to expand 

its capital base to lend to small clean 

energy projects in emerging markets

worldwide, a loan for the development 

of a compact fluorescent lighting manu­ 

facturing plant, and a loan for the con­ 

struction of 50 "green" residential 

homes. A number of other renewable 

energy and sustainable finance projects

are in the due diligence phase including 

a biomass power project, a geothermal 

project, a biofuel production project and 

solar panel installations. OPIC looks

forward to continuing to expand its debt 

portfolio of renewable energy and partnering with investors to support long 

term sustainable development in 

emerging markets.

OPIC Supports Sustainable

Development
February 2009

OPIC Insurance Helps to Upgrade Hydroelectric Facilities in Colombia

OPIC is insuring $212 million in financing for a project to upgrade five power facilities in Colombia, which 

is significantly increasing that country’s electricity generation and helping to open the government­controlled 

power company to equity investment by the private sector. The $212 million OPIC­insured facility, together with a $38 million uninsured facility both arranged and 

underwritten by Citigroup, is provided to ISAGEN, a leading Colombian power company whose majority 

shareholder is the Colombian government. The loan is being used largely to help ISAGEN modernize and 

maintain its San Carlos, Jaguas and Termocentro facilities, rehabilitate the Calderas hydropower plant, and 

begin the construction of the Amoya power facility, enabling Colombia to increase its generating capacity and 

reduce power outages.

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 market­based fees for its products, it operates on a self­sustaining 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.

OPIC Insurance Supports 

Construction of Hydro Power Plant in

Sri Lanka

OPIC is providing$1.4 million in political risk insur­ ance to support construction of a hydroelectric power 

plant in Sri Lanka that will help the country meet 

growing demand for electricity and is consistent with 

the Sri Lankan government’s effort to attract greater

private investment in the power sector. Construction 

of this hydroelectric plant is not only expected to 

help Sri Lanka meet its growing demand for electric­ 

ity, but will do so in an economically efficient and 

environmentally friendly way that illustrates the Sri 

Lankan government’s success in attracting private 

sector investment to the industry.

(Funds continued)

managed two successful OPIC

Funds, Global Environment 

Emerging Markets Fund, L.P. and 

Global Environment Emerging 

Markets Fund II, L.P. The fund 

has a target capitalization of $300 

million.

US Renewables Group

OPIC is providing up to $100 million of capital to be co­invested in 

renewable power generation,

clean fuels and renewable energy 

value­chain investments in emerging markets worldwide. US 

Renewables Group is the fund 

manager, and OPIC capital will be 

managed in connection with the 

USRG Power and Biofuels Fund 

III. The fund will target investments in asset­focused, renewable 

energy projects, or platform com­ 

panies that are projected to have

strong cash flows within two 

years and have low technology 

risk. The fund has a target capital­ 

ization of $300 million.

For more information, visit 

www.opic.gov/investment/index.asp 

Since the mid­1990s, OPIC has provided over $1 

billion in political risk insurance support to 

approximately  twenty  renewable  energy  projects 

in  emerging markets. OPIC Insurance  has  issued 

coverage  for twelve  hyrdroelectric  facilities  in 

countries such as Brazil, Costa Rica, India, Serbia 

and  the  Phillipines. Political  risk insurance  has 

also helped support four geothermal power plants 

and two wind energy projects.