WWW.OPIC.GOV

AN AGENCY OF

THE UNITED STATES

GOVERNMENT

1100 NEW YORK AVE., NW

WASHINGTON, D.C. 20527

202.336.8799

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PROGRAM HANDBOOK

O V E R S E A S 

P R I VA T E 

I N V E S T M E N T 

CORPORATION

WWW.OPIC.GOV

A N A G E N C Y O F 

T H E U N I T E D S T A T E S 

GOVERNMENT

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Table of Contents

Introduction to OPIC 4

OPIC’s Mission 5

Requirements for OPIC Support 6

Eligible Countries 7

Development Contribution 7

U.S. Economic Contribution 8

Environmental Impact 9

Other Requirements 9

Monitoring and Compliance 10

Financing 12

General Requirements 14

Project Ownership 14

Financing Plan 14

OPIC Participation 15

Completion Agreement and Sponsor

Support 15

Financing Techniques 16

Guaranty Eligibility 16

Loan Terms 17

Relationships with Other Financial

Institutions 18

Application Procedures 19

Political Risk Insurance 22

General Requirements 24

Coverages 25

Currency Inconvertibility 25

Expropriation 25

Political Violence 26

Assets Coverage 27

Business Income Coverage 27

Stand-Alone Terrorism Insurance 28

Special Insurance Products 28

Institutional Loans 28

Capital Markets Transactions 29

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Leasing 30

Capital Leases 30

Operating Leases 30

Oil and Gas 31

Expropriation 31

Interference with Operations 31

Natural Resources (Except Oil and Gas) 32

Contractors and Exporters 32

Bid, Performance, Advance Payment and

Other Guaranty Coverages 33

Customs Bonds Coverage 34

Assets Coverage 35

Disputes Coverage 35

Election of Coverages 36

Premium Base Rates 37

Availability, Extent of Coverage and Claims 37

Application Procedures 41

Registration 41

Application 41

Investment Funds 42

Special Products for U.S. Small and

Medium-Sized Businesses 46

Small and Medium Enterprise (SME)

Finance Program 48

Small Business Center (SBC) Program 48

Requirements for SME and SBC Programs 49

SBC Political Risk Protection Program 49

Application Process 50

Additional Information 52

OPIC Countries and Areas 53

Contacting OPIC 56

U.S. Government International Trade

Information 59

Photography Credits 59

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Introduction to OPIC

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OPIC’S MISSION

The Overseas Private Investment Corporation

(OPIC) was established as an agency of the

U.S. government in 1971. OPIC 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.

Mobilizing America’s private sector to advance

U.S. foreign policy and development initiatives,

OPIC-supported projects make a difference by

expanding economic development, which can

encourage political stability and free market

reforms. Currently, OPIC programs are available

for new and expanding business enterprises in

more than 150 countries worldwide.

OPIC’s fi nancing and political risk insurance also help U.S. businesses of all sizes to

compete in emerging markets and meet the

challenges of investing overseas when private

sector support is not available. OPIC promotes

U.S. best practices by requiring projects to adhere to international standards on the environment and worker and human rights.

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REQUIREMENTS FOR OPIC 

SUPPORT

OPIC supports, insures and finances investment 

projects with substantial U.S. participation that are 

financially sound, promise signifi cant benefits to 

the social and economic development of the host 

country, and foster private initiative and competition. OPIC will not support projects that could 

result in the loss of U.S. jobs, adversely affect the 

U.S. economy or the host country’s development or 

environment, or contribute to violations of internationally recognized worker rights.

OPIC requires signifi cant U.S. involvement in 

the projects it supports. Requirements for OPIC 

political risk insurance, financing and small businesses differ. For financing eligibility requirements, 

please see “General Requirements” on page 14; for 

insurance eligibility requirements, please see “General Requirements” on page 24; for small business 

eligibility, please see “Requirements for SME and 

SBC Programs” on page 49. 

Projects significantly involving U.S. small businesses and cooperatives are considered a priority. 

See pages 46 to 50 for more information.

OPIC support is available for new investments, 

privatizations, and expansions and modernizations of existing plants. Acquisitions of existing 

operations are eligible for financing if the investor 

contributes additional capital for modernization 

and/or expansion. OPIC generally can insure an acquisition of an industrial, commercial or other selfsustaining enterprise, subject to a finding of positive 

developmental benefits. Investments in certain sectors may be excluded from consideration based on 

statutory or policy guidelines. Investors can contact 

OPIC directly to obtain more information about 

these sectors. Financing is not available for projects 

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that can secure adequate financing from commercial sources. Investors are required to confirm that 

they have considered private sector political risk 

insurance before OPIC will issue coverage.

Eligible Countries

OPIC programs are available in more than 150 

countries and areas listed on pages 54 to 55. From 

time to time, statutory and policy constraints 

may suspend the availability of OPIC programs in 

certain countries.

Likewise, countries where programs were previously 

unavailable may become eligible. Also, in certain 

countries, the investor may need to obtain host 

government approval before OPIC can support the 

project. The approval procedures vary from country to country and are available from OPIC.

Investors are urged to contact OPIC directly for upto-date information regarding availability of OPIC 

services in specific countries, as well as information 

on program availability in countries not listed.

www.opic.gov/generalopic/ctrylist.htm

Development Contribution

OPIC’s mandate is to support U.S. private sector 

investments that are responsive to the development needs of the host country, and that foster 

private sector initiatives and competition. The 

contribution of a proposed investment to the economic and social development of the host country 

will be carefully examined with respect to factors 

such as:

• leveraging private capital;

• demonstration of social responsibility;

• support for developmental infrastructure;

• increased availability of goods and services of 

better quality or at lower cost;

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• development of skills through training;

• transfer of technological and managerial skills;

• foreign exchange earnings or savings;

• job creation;

• encouragement of private ownership;

• host country tax revenues; and

• stimulation of small and medium-sized 

enterprises

OPIC is required to discourage monopolistic 

practices, and projects involving anticompetitive 

advantages may require additional scrutiny. OPIC 

will provide guidance to assist sponsors in submitting the necessary information.

U.S. Economic Contribution

OPIC supports only those projects that are not 

likely to harm the U.S. economy or have a negative effect on U.S. employment. OPIC will not 

support “runaway plants,” which substitute existing U.S. facilities with foreign plants to serve the 

same markets.

By statute, and consistent with overall U.S. 

government policy, OPIC does not participate in 

projects subject to performance requirements that 

would substantially reduce the potential U.S. trade 

benefits of the investment. Performance requirements are host government incentives designed 

to cause a project to operate in a way that is 

more beneficial to the local economy than would 

otherwise be the case. Of particular concern are 

“trade-related” performance requirements covering 

local content and maximum import and minimum 

export levels where the effect is to reduce U.S. 

trade benefits that would otherwise accrue.

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Environmental Impact

OPIC is required by statute to conduct an environmental assessment of every project proposed 

for insurance or financing and to decline support 

for projects that, in OPIC’s judgment, would have 

an unreasonable or major adverse impact on the 

environment, or on the health or safety of workers 

in the host country. For most industrial sectors, 

OPIC expects projects to meet the more stringent 

of World Bank or host-country environmental, 

health and safety standards. Of particular concern 

are adverse effects on the health and safety of 

employees and the public, as well as on tropical 

forests, national parks, protected areas and endangered species.

For projects in sectors designated as “environmentally sensitive,” a full Environmental Impact 

Assessment (EIA) must be submitted for OPIC’s 

review. As part of its review process, OPIC lists 

every such project on OPIC’s Web site for a 60-day 

public comment period. The listing includes the 

country and industry sector of the projects but 

not the sponsor’s name. This listing may result in 

requests from members of the public for copies of 

the EIA; therefore, the EIA must be in a form that 

can be released to the public without compromising confidential business information. 

www.opic.gov/environasp/envirohome.htm

Other Requirements

OPIC is prohibited by statute from supporting projects that contribute to violations of internationally 

-recognized worker rights. OPIC insurance and 

finance agreements require the investor to agree to 

respect these rights, including the rights of association, collective bargaining and acceptable working 

conditions with respect to wages, hours of work, 

occupational health and safety, and minimum-age 

standards.

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OPIC does not support projects that involve 

illicit payments. OPIC insurance and finance 

 documentation requires representations and 

covenants from the investor regarding compliance 

with applicable corrupt practices laws.

Monitoring and Compliance

OPIC systematically monitors investor compliance 

with U.S. economic, environmental, worker rights 

and corrupt practices representations through 

questionnaires, investor reporting and site visits. 

Noncompliance may constitute a default under 

OPIC insurance contracts and loan agreements.

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Financing

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OPIC fi nancing provides medium- to long-term

funding through direct loans and loan guaranties to eligible ventures. OPIC can provide

fi nancing on a project fi nance or a corporate fi nance basis. OPIC generally looks for

repayment from the cash fl ows generated by

projects rather than relying on sovereign or

sponsor guaranties.

OPIC carefully analyzes the economic, technical, marketing and fi nancial soundness of each

project. There must be adequate cash fl ow to

pay all operational costs, service all debt,

and provide the owners or sponsors with an

adequate return on their investments. Sponsors

may not need to pledge their own general credit

beyond the required completion undertakings

if the project is suffi ciently self-sustaining as

a project fi nance transaction. In a corporate

fi nance loan structure, OPIC looks to the credit

standing and cash fl ow of an existing corporate

entity other than the project company to support

debt repayment.

OPIC can provide medium- and long-term

fi nancing in countries where conventional

fi nancial institutions often are reluctant or

unable to lend on such a basis. Since its

programs support private sector investments

in fi nancially viable projects, OPIC does not

offer concessionary terms usually associated

with government-to-government lending or

grant-type fi nancing, nor does it typically offer

fi nancing of export sales unrelated to long-term

investments in overseas businesses. OPIC will

not lend to projects that can secure adequate

fi nancing from commercial sources.

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General Requirements

In addition to the eligibility requirements indicated on pages 5–10, all projects or transactions 

considered for OPIC financing must be commercially and financially sound. They must be within 

the demonstrated competence of the proposed 

management, which must have a proven record of 

success in the same, or a closely-related business, as 

well as a significant continuing financial risk in the 

enterprise.

OPIC provides financing for a wide range of 

enterprises under terms and conditions sufficiently 

flexible to permit sound developmental projects to 

be implemented.

Project Ownership

OPIC expects a U.S. equity or debt investor to 

assume a meaningful share of the risk, generally in 

the range of 25 percent of the project cost. Exceptions to the amount of investment requirement 

may be made in cases where U.S. brand-name franchisors, operators or contractors are signifi cantly 

involved in the project on a long-term basis.

Normally, more than 50 percent of the voting shares 

of the overseas venture will be held by firms or 

persons from the private sector. However, financing 

may be offered to an entity in which government 

ownership of voting shares represents the majority, 

if it is contractually agreed that management will remain in private hands, and there is a strong showing 

of direct U.S. involvement in other respects.

Financing Plan

Investors must be willing to establish sound debtto-equity relationships that will not jeopardize the 

success of the project through excessive leverage. 

In general, OPIC looks for a debt-to-equity ratio 

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in the range of 60/40. The financial structure will 

vary with the nature of a specific business, and by 

the variability of expected cash flows. Experience 

indicates that an adequate level of equity contribution is essential for a project to succeed. 

The financial plan should provide funds to meet all 

costs, including feasibility studies; organizational 

expenses; land; construction; machinery; equipment; training and market development expenses; 

interest payments during construction; start-up 

expenses and initial losses; legal expenses and loan 

fees; and adequate working capital.

OPIC Participation

The amount of OPIC’s participation may vary, 

taking into consideration the project’s contribution 

to the host country’s development, its financial 

requirements, and the extent to which the 

financial risks and benefits are shared among the 

investors and the lenders. 

OPIC may assist in designing the financial plan 

and in coordinating it with other lenders and investors. OPIC will not generally support more than 

75 percent of the total investment.

Completion Agreement and Sponsor Support

OPIC recognizes that possible cost overruns and 

early operating problems may occur, despite careful 

planning and an allowance for contingencies in the 

financial plan. Therefore, OPIC, like other limited 

recourse lenders, normally requires that the principal sponsors enter into an agreement that guarantees the OPIC loan, the completion of the project, 

the company’s debt service, and cost overruns prior 

to project completion. Project completion is defined 

to include certain financial, legal and operating 

tests, as well as physical completion. The sponsors 

must have the financial capability to perform their 

obligations under this agreement.

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In corporate finance transactions, OPIC lends 

directly to the U.S. corporate parent of the foreign 

venture, and looks to the parent for repayment of 

the loan and all other completion requirements.

Financing Techniques

OPIC provides loan guaranties, which are typically 

used for larger projects, and direct loans, which are 

reserved for projects sponsored by or significantly 

involving U.S. small businesses and cooperatives. OPIC can normally guarantee or lend from 

$100,000 up to $250 million per project, although 

projects in the oil and gas sector with offshore, 

hard-currency revenues may be approved for up to 

$400 million under certain conditions.

Under both financing techniques, the sponsor 

or the borrower in corporate finance transactions approaches OPIC to analyze and structure 

financing for an overseas project. OPIC determines 

the appropriate terms of borrowing, and, where a 

guaranty is sought rather than a direct loan, may 

assist in identifying financial institutions willing to 

provide the needed funds.

OPIC also expects a U.S. investor to assume a 

meaningful share of the risk, generally through 

ownership of at least 25 percent of the equity in 

the project. Exceptions to the amount of equity 

requirement may be made in cases where U.S. 

brand name franchisors, operators, or contractors 

are significantly involved in the project.

Guaranty Eligibility

Guaranties are issued to legal entities created 

under the laws of the U.S., any state or territory, 

or D.C., such as corporations, partnerships, or 

other associations including nonprofit associations 

more than 50 percent beneficially owned by U.S. 

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citizens. Foreign corporations that are more than 

95 percent U.S. owned are also eligible. Typical 

guaranty funding institutions include insurance 

companies, pension funds, and commercial banks.

These lenders are protected by the full faith and 

credit of the United States government. OPICguaranteed loans are classified as eligible U.S. 

government securities for insurance companies and 

many other institutional investors.

Loan Terms

The repayment schedule of a direct or guaranteed 

loan will be designed taking into consideration 

the purpose of the loan and the projected level of 

cash flows to be generated in the transaction. The 

cash flows must be sufficient to meet interest and 

principal payments, and to provide for an adequate 

return to equity investors. The terms of such loans 

will typically provide for a final maturity of at least 

three years, including a suitable grace period during which only interest is payable.

Interest rates on OPIC loans will vary with OPIC’s 

assessment of the commercial and political risks 

involved. They will also reflect interest rates in longterm capital markets in the United States. Base 

rates of interest on guaranteed loans are comparable to those of other U.S. government-guaranteed 

issues of similar maturity. To that base rate, OPIC 

adds its guaranty fee, calculated as a percentage 

of the outstanding principal amount, depending 

upon commercial and political risk. Both fixed and 

floating interest rates are available, although direct 

loans are generally financed on a fixed rate basis.

In general, OPIC expects that its creditor participation will be on a senior basis, pari passu with the 

holders of other senior debt, and that it will share 

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in a first lien on fixed assets and any other appropriate collateral. A host-government guaranty 

normally is not required by OPIC. Other structures 

will be considered on a case-by-case basis.

Consistent with commercial lending practices, 

upfront fees range from 1 percent to 2 percent, 

commitment fees and cancellation fees may be 

charged, and reimbursement is required for related 

out-of-pocket expenses, including fees for outside 

counsel and the services of experts or consultants.

Relationships with Other Financial 

Institutions

OPIC’s financing is designed to complement and 

supplement the lending and investing facilities of 

commercial banks; local, regional and international development banks and investment funds; other 

agencies of the United States government such 

as the Export-Import Bank of the United States; 

and a number of other multilateral and bilateral 

lending institutions. OPIC does not compete with 

the private market. OPIC advises and assists U.S. 

sponsors in securing debt and equity financing 

from these institutions, where appropriate, in conjunction with OPIC financing.

Some of OPIC’s financings involve at least one 

other lender or independent investor, and several 

such institutions are typically involved in large 

projects. Many small business projects can be 

wholly financed by OPIC. OPIC’s willingness 

to finance a substantial portion of debt requirements, to accept longer or more flexible maturities, and to finance at fixed interest rates may 

facilitate the participation of other lenders and 

investors in a project.

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Application Procedures

The sponsor of a potential project interested in 

obtaining financing from OPIC should submit an 

Application for Financing (using Form 115) as well 

as a Sponsor Disclosure Report (Form 129). The 

application lists all required attachments including 

a business plan. These documents should establish general eligibility, and give OPIC the basis 

on which it can respond to the amount and basic 

terms of the requested financing. It should include:

• a description of the project;

• the identity, background and audited financial 

statements of the project’s proposed principal 

owners and management;

• planned sources of supply, anticipated output 

and markets, distribution channels, competition, and the basis for projecting market share;

• a summary of project costs and anticipated 

suppliers of capital goods and services;

• a financial plan, including the sources and uses 

of funds for the project, and the proposed collateral package and sponsors guaranties available 

for the fi nancing;

• pro forma financial statements of the proposed 

project or corporate borrower and accompanying assumptions, which include the requested 

loan term, interest-only grace period and debt 

service coverage ratios; and

• a description of the contribution the business is 

expected to make to local economic and social 

development.

The data prepared and submitted by sponsors to 

substantiate sources of equity, raw materials, technical feasibility and market demand are carefully 

analyzed together with the financial forecasts.

Following OPIC’s preliminary review and approval, 

the sponsors may be asked to provide additional 

economic, financial and technical information. In 

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some instances, OPIC will issue a retainer letter 

which may indicate that OPIC will need to retain 

independent consultants to assist in its analysis 

and review. Such information is essentially that 

which any board of directors would need before committing its company to an investment. 

Guidelines for formal applications will be provided, 

though the type of information to be supplied will 

vary with the nature of the proposed business. 

The time required to review and approve an application depends on the scope and detail of the 

data presented, as well as on the complexity of the 

transaction, and typically varies from two to six 

months. A key determinant is the thoroughness 

and timeliness with which all the information 

required by OPIC is developed and submitted. Approval time may be reduced in corporate financing 

transactions since there are fewer project issues to 

be researched and, generally, collateral is located 

in the United States. Investors are encouraged to 

consult with OPIC early in the loan process, since 

simultaneous satisfaction of as many of the above 

requirements as possible will speed loan approval 

and disbursement.

For More Information

For more information on OPIC financing, or to 

obtain application forms, written requests may be 

sent to:

Overseas Private Investment Corporation

Information Offi cer, Offi ce of External Affairs

1100 New York Avenue, N.W.

Washington, D.C. 20527

www.opic.gov/forms/forms.htm

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Political Risk Insurance

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OPIC insurance can cover the following three

political risks:

• currency inconvertibility—deterioration

in the investor’s ability to convert profits,

debt service and other investment returns

from local currency into U.S. dollars, or

to transfer U.S. dollars out of the host

country;

• expropriation—loss of an investment

due to expropriation, nationalization or

confiscation by the host government; and

• political violence—loss of assets or business income due to war, revolution, insurrection, or politically motivated civil strife,

terrorism or sabotage.

OPIC can insure up to $250 million per project

(and up to $300 million for projects in the oil

and gas sector with offshore, hard currency

revenues). Projects in the oil and gas sector

with offshore, hard currency revenues may be

approved for an exposure limit of up to $400

million if the project receives a credit evaluation (“shadow rating”) of investment grade or

higher. OPIC has no minimum investment size

requirements.

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General Requirements

OPIC provides political risk insurance to U.S. 

investors, contractors, exporters and financial 

institutions involved in international transactions. 

Specifically, OPIC insurance is available to:

• U.S. citizens;

• corporations, partnerships or other associations 

created under the laws of the United States, its 

states or territories, and beneficially owned by 

U.S. citizens;*

• foreign corporations that are more than 95 percent owned by investors eligible under the above 

criteria; and

• other foreign entities that are 100 percent 

U.S.-owned.

Insurance is available for investments in new ventures, expansions of existing enterprises, privatizations and acquisitions with positive developmental 

benefits. Coverage is available for equity investments, parent company and third-party loans 

and loan guaranties, technical assistance agreements, leases, consigned inventory or equipment, 

and other forms of investment. Coverage is also 

* OPIC deems a corporation organized under the 

laws of the United States or its states and territories 

to be beneficially owned by U.S. citizens if more than 

50 percent of each class of its issued and outstanding stock is owned by U.S. citizens either directly or 

beneficially. Where shares of stock of a corporation 

with widely dispersed public ownership are held in the 

names of trustees or nominees (including stock brokerage firms) with addresses in the United States, such 

shares may be deemed to be owned by U.S. citizens 

unless the investor has knowledge to the contrary. 

OPIC also permits the beneficial ownership of U.S. 

corporations to be determined by tracing back through 

any foreign ownership of their shares to the ultimate 

beneficial owners.

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available for capital markets investors and contractors and exporters’ exposures, including certain 

breaches of contractual dispute resolution mechanisms and wrongful calling of bid, performance, 

advance payment, other guaranties posted in favor 

of foreign buyers, and other risks.

COVERAGES

Currency Inconvertibility

Currency inconvertibility coverage compensates 

investors if new currency restrictions prevent the 

conversion or transfer of investment returns from 

insured investments. Currency restrictions may 

take the form of new, more restrictive foreign 

exchange regulations or a failure by exchange 

control authorities to act on an application for 

hard currency.

OPIC inconvertibility coverage may insure earnings, returns of capital, principal and interest 

payments, technical assistance fees, and similar 

remittances on insured investments. 

OPIC inconvertibility coverage does not protect 

against the devaluation of a country’s currency. 

Rather, OPIC insures investors against deterioration of their ability to convert local currency or 

transfer dollars from the project country through 

any legal exchange mechanism sanctioned by the 

central government of the project country.

Expropriation

Expropriation coverage protects against the nationalization, confiscation or expropriation of an investment, including “creeping” expropriation, due 

to unlawful government acts (or a series of acts) 

that deprive the investor of its fundamental rights 

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in a project. The coverage excludes losses due to 

lawful regulation or taxation by host governments 

and actions provoked by the investor or foreign 

enterprise.

For equity investments, compensation is based on 

the book value of the investment as of the date of 

expropriation. In most cases, OPIC covers total 

expropriation only. To receive compensation, 

an investor must assign all rights in an insured 

investment to OPIC. For parent-company loans to 

subsidiaries, compensation is based on outstanding principal and accrued interest that would have 

been paid.

Coverage for expropriation of funds only—unlawful host government blockage of funds intended 

to be remitted as returns of the insured investment or earnings on it—may be purchased for a 

reduced premium in conjunction with currency 

inconvertibility coverage. Insurance for specialized 

risks peculiar to a specific project may be available, 

including, for example, coverage against losses 

resulting from the unlawful breach of specific host 

government obligations identified by the insured 

at the outset as vital to the successful operation of the project. Under certain circumstances, 

OPIC is also able to cover the unlawful breach of 

specifi c contractual obligations of a subsovereign 

or a corporation owned or controlled by a foreign 

government. These coverages are available on a 

case-by-case basis and will be individually rated.

Political Violence

Political violence coverage compensates for property and income losses caused by violence undertaken for political purposes. Declared or undeclared 

war, hostile actions by national or international 

forces, civil war, revolution, insurrection, and civil 

strife, including politically motivated terrorism 

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and sabotage, are all examples of political violence 

covered by OPIC. 

An investor may choose to insure for all these 

risks, or to exclude civil strife. Actions undertaken 

primarily to achieve labor or student objectives are 

not covered. OPIC pays compensation for two types 

of losses: damage to tangible assets, and business 

income loss caused by damage to tangible assets. 

An investor may purchase one or both coverages.

Assets Coverage

Assets coverage compensates for loss of or damage 

to tangible property caused by political violence. 

Compensation is based on the investor’s share of 

the adjusted cost of the property or replacement 

cost. Adjusted cost is defined as the least of the 

original cost of the item, the fair market value 

at the time of loss, or the cost to repair the item. 

OPIC may pay replacement cost up to twice the 

original cost of the lost or damaged property, 

provided the property is actually replaced within 

three years.

Business Income Coverage

Business income coverage protects the investor’s 

share of income losses resulting from damage 

to, or loss of, the use of the assets of the foreign 

enterprise caused by political violence. With an 

“off-site” rider, OPIC also may compensate for 

income losses resulting from damage to specific 

sites outside the insured facility, such as a critical 

railway spur, power station, or supplier. 

Compensation is based on what the project would 

have realized in net income but for the damage or 

loss of use of the assets, plus the investor’s share 

of the project’s continuing, normal operating 

expenses that must be paid during the time the 

damage is being repaired. OPIC will also pay for 

expenses that reduce the business income loss, 

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28 PROGRAM HANDBOOK

such as renting a temporary facility. Compensation 

is paid for the period until productive capacity can 

reasonably be restored, not to exceed one year.*

Stand-Alone Terrorism Insurance

Stand-alone terrorism insurance is available for 

equity investments and investments of property. 

Terrorism coverage protects against violent acts 

undertaken by individuals or groups that do not 

constitute national or international armed forces 

with the primary intent of achieving a political 

objective. Coverage includes protection against the 

use of chemical, biological, radiological or other 

weapons of mass destruction. OPIC can provide 

terrorism insurance for up to ten years, and is 

available for both assets and business income.

SPECIAL INSURANCE PRODUCTS 

OPIC has several insurance products offering coverages tailored to meet the special insurance needs 

associated with certain types of international 

investments.

Institutional Loans

OPIC’s political risk insurance enables U.S. banks 

and other financial institutions to play an active 

role in financing projects in developing countries 

while managing the incremental cross-border 

exposure associated with these investments. A 

wide range of banking activities can be insured by 

OPIC, including:

• loans made or arranged by banks;

• debt-for-equity investments;

* A third form of political violence coverage, Interference with Operations, is available for Oil and Gas 

Projects. See page 31.

24911_P01_60 28 4911_P01_60 28 
WWW.OPIC.GOV 29

• commodity price or interest rate swaps; and

• gold loans.

For institutional lenders, currency inconvertibility 

insurance coverage pays compensation for defaults 

on scheduled payments that result from deterioration in the ability to convert these payments from 

local currency to dollars, or to transfer dollars 

outside the host country. In the case of expropriation or political violence, compensation generally 

is payable if the borrower defaults on a scheduled 

payment as a direct result of one of these events, 

and the default lasts three months (or one month 

in the event of subsequent defaults caused by the 

same event).

Loans must have a tenor of at least three years, and 

borrowers must be private-sector enterprises in the 

foreign country. Coverage may be tailored to reflect 

the specific nature of the project.

Capital Markets Transactions

In response to growing demand, especially for infrastructure projects, investors and their financial 

advisors have sought new sources of financing, and 

have turned to the capital markets to supplement 

traditional bank financing. Consequently, capital 

markets transactions, such as 144A bond issues, are 

playing an increasingly important role in financing 

projects in emerging markets. OPIC can provide 

inconvertibility and expropriation of funds coverage for capital markets transactions similar to the 

coverage provided under OPIC’s institutional lender’s program. The coverage may enable investors to 

mobilize capital markets funding for transactions 

where it was previously unavailable.

24911_P01_60 29 4911_P01_60 29 
30 PROGRAM HANDBOOK

Leasing

Cross-border leasing is another means of financing 

capital investments in many developing and emerging market countries. OPIC has insurance packages 

to cover both capital and operating leases. The 

insurance is available to U.S. investors leasing to 

private-sector entities. Transactions must have a 

tenor of three years or more.

Capital Leases

Capital or financial leases are those where ownership of the asset is expected to be transferred to 

the lessee at the end of the lease. Under OPIC’s 

inconvertibility coverage, compensation is paid if 

defaults on lease payments are caused directly by 

deterioration in the conditions for conversion of 

local currency or transfer of dollars. In the case 

of expropriation or political violence, compensation is paid if one of these events directly causes a 

default on a lease payment.

Operating Leases 

Under operating leases where the U.S. lessor 

expects to recover the leased assets when the lease 

expires, expropriation and political violence compensation is based on the value of the leased assets, 

including installation and transportation costs.

Under OPIC’s inconvertibility coverage, compensation is paid if defaults on lease payments are caused 

directly by deterioration in the conditions for conversion of local currency, or transfer of dollars.

OPIC also provides coverage against unlawful 

host-government actions that prevent a lessor from 

enforcing its right to repossess, re-export or deregister leased equipment.

24911_P01_60 30 4911_P01_60 30 
WWW.OPIC.GOV 31

Oil and Gas

OPIC has comprehensive insurance products to 

encourage petroleum exploration, development and 

production in developing countries. In addition 

to its standard political risk insurance, OPIC can 

provide the following enhanced coverages:

Expropriation

Expropriation coverage for oil and gas projects 

includes coverage for losses caused by material 

changes in project agreements unilaterally imposed 

by a host government. This includes abrogation, 

impairment, and repudiation or breach of concession agreements, production sharing agreements, 

service contracts, risk contracts, and other agreements between the U.S. investor or the foreign 

enterprise and the foreign government. Such actions must last for at least six months, and prevent 

the insured investor from effectively exercising 

its fundamental rights with respect to the project 

agreements (such as rights to take and export 

petroleum, or to be paid for it), and otherwise 

meet OPIC’s expropriation criteria. The coverage 

can also include compensation for confiscation of 

tangible assets and bank accounts. Compensation 

is based on the value of the insured investment, 

or, in the case of confiscation of specific assets, the 

book value of the confiscated assets. OPIC will not 

compensate for loss of reserves of any kind.

Interference with Operations 

This coverage insures against cessation of operations lasting six months or more caused by political 

violence. The investor has the right, and OPIC 

may require the investor, to reacquire from OPIC 

its insured interests in the project if within five 

years the political violence has abated and the 

investor can resume operations.

24911_P01_60 31 4911_P01_60 31 
32 PROGRAM HANDBOOK

Natural Resources (Except Oil and Gas)

Mineral and other natural resource projects can 

be major contributors to economic development. 

To encourage such projects, OPIC may offer 

coverage tailored to the special needs of investors 

in this sector.

Additionally, investors may also be insured against 

the unlawful withdrawal or breach by the host 

government of mineral exploration and development rights, and other legal rights vital to the success of a particular project. Larger natural resource 

projects typically involve substantial risk-taking by 

project lenders, owners and others. Accordingly, 

OPIC typically offers coverage for equity, parent 

company and institutional loans, owners’ guaranties of loans (including completion guaranties), 

leases of equipment to project companies, and 

other exposures to these projects.

Contractors and Exporters

OPIC’s insurance for U.S. contractors and exporters insures against:

• wrongful calling of bid, performance or advance 

payment guaranties, customs bonds, and other 

guaranties;

• loss of physical assets and bank accounts due to 

confiscation or political violence and inconvertibility of proceeds from the sale of equipment 

used at the site; and

• losses due to certain breaches by the foreign buyer 

of the contractual disputes resolution procedure.

This insurance can protect U.S. companies acting 

as contractors in international construction, sales 

or service contracts, and U.S. exporters of heavy 

machinery, turbines, computers, medical equipment and other goods. Typically, coverage is issued 

24911_P01_60 32 4911_P01_60 32 
WWW.OPIC.GOV 33

when the U.S. company has a contract with a 

foreign government buyer.

Bid, Performance, Advance Payment and 

Other Guaranty Coverages

Bid, performance, advance payment and other 

guaranties issued on behalf of a U.S. exporter of 

goods or services, or a U.S. contractor in favor of a 

foreign government buyer, can be covered against 

the risk of a wrongful calling. The guaranties 

usually are in the form of irrevocable, on-demand, 

standby letters of credit. A wrongful calling is one 

not justified by the terms of the underlying contract, or the invitation for bids.

In the case of a bid guaranty, the insured may file 

a claim when it believes a wrongful calling has 

occurred, and OPIC will then determine if the 

calling is, in fact, wrongful. With performance, 

advance payment and other guaranties, the insured 

must invoke the dispute resolution procedure in its 

contract with the foreign buyer before OPIC will 

pay compensation.

Events of Compensation. OPIC will compensate for 

wrongful calling of performance or advance payment guaranties if:

• the foreign buyer’s inaction prevents the dispute 

resolution procedure from proceeding;

• the foreign buyer refuses to pay an award in 

favor of the insured;

• the procedure yields an award in favor of the 

foreign buyer, and the award can be proven 

to have been obtained through fraud, corruption or duress, or, if there is a written record of 

the proceedings, the award is unsupported by 

substantial evidence in that record;

• the decision maker fails to issue a determination 

within a reasonable period of time (not less than 

36 months) despite the insured’s compliance 

with all of the procedure’s requirements; or 

24911_P01_60 33 4911_P01_60 33 
34 PROGRAM HANDBOOK

• due to changed conditions in the project country, it would be too dangerous or futile for the 

insured to pursue dispute settlement.

Requirements. Coverage for wrongful calling of 

performance, advance payment and other guaranties is available only when the underlying contract 

contains a dispute resolution procedure that, at the 

time insurance coverage is issued, is fair, impartial 

and expeditious, and leads to enforceable results.

Exclusions. OPIC does not compensate the insured 

if the guaranty is drawn because the insured fails 

to perform its contractual obligations, or the insured provokes or agrees to the drawing.

Private Entities. Coverage is also available to 

insureds who post guaranties in favor of private, 

nongovernmental entities. In such cases, wrongful 

calling is defined as a drawing that is not justified 

by the terms of the contract, and is directly caused 

by the host government, or is followed by unlawful 

host-government action that thwarts the dispute 

resolution procedure.

Customs Bonds Coverage

Customs bonds are required when a foreign government wants assurances that a company will 

re-export machinery or equipment temporarily 

moved into the country, usually for the duration of 

a construction project or trade show, rather than 

selling it locally. Customs bonds replace customs 

duties and may be as much as 200 percent of the 

value of the equipment.

OPIC provides compensation for a loss resulting 

from a wrongful calling by a foreign government of 

a standby letter of credit issued as a customs bond. 

In the case of a claim, OPIC will determine if a 

calling is wrongful without requiring the insured 

to pursue dispute resolution procedures.

24911_P01_60 34 4911_P01_60 34 
WWW.OPIC.GOV 35

Assets Coverage 

U.S. contractors and exporters with physical assets 

overseas may insure project assets for the following 

risks:

Currency Inconvertibility. Local currency proceeds 

from the sale of insured property after job completion 

are covered against the risk that the currency will 

become inconvertible into U.S. dollars. Inconvertibility is offered only to the extent local currency is 

convertible, and dollars are transferable under hostcountry exchange regulations and practices in effect 

at the time the insurance is issued. Payments for work 

completed under the contract are not covered.

Confi scation. Physical assets and bank accounts 

of the insured in the host country in connection with a project are covered against the risk of 

confiscation by the host government.

Political Violence. Physical assets owned by the 

insured or for which the insured bears the risk of 

loss are covered against the risk of damage due to 

political violence.

Disputes Coverage 

Disputes coverage provides protection in the event 

of contractual disputes that may arise during the 

performance of a contract. As a condition for 

compensation, a U.S. contractor must invoke the 

dispute resolution mechanism in its contract with 

the foreign buyer.

Events of Compensation. OPIC will compensate the 

contractor if:

• the foreign buyer refuses to pay a judgment or 

an award in favor of the insured;

• the foreign buyer’s inaction prevents the dispute 

resolution procedure from proceeding; or

• due to changed conditions in the project country, it is too dangerous or would be futile for the 

insured to pursue the agreed-upon procedure.

24911_P01_60 35 4911_P01_60 35 
In the first situation, OPIC compensation is based 

on the amount of the award. In the latter two 

cases, compensation is limited to the insured’s uncompensated cost of goods, services and materials 

provided pursuant to its contract with the buyer.

Requirements. Disputes coverage is only offered 

when a project has secure and adequate funding, 

commonly from an international development or 

export credit agency. As with performance and 

advance payment guaranties, disputes coverage 

is only available when the underlying contract 

contains a dispute resolution procedure that, at the 

time insurance coverage is issued, is fair, impartial 

and expeditious, and leads to enforceable results.

Private Entities. If the insured’s contract is with a 

private, nongovernmental entity, OPIC will only 

compensate the insured if nonpayment or noncompliance with the dispute resolution procedure is 

directly caused by the host government.

ELECTION OF COVERAGES

Coverage elections for most equity and shareholder 

debt investments are based on a coverage ceiling 

and an active amount. The coverage ceiling represents the maximum insurance available for the 

insured investment and future earnings under an 

insurance contract. Premiums are calculated based 

on the active amount, which represents the insurance actually in force during any contract period.

The active amount under all coverages must equal 

at least the book value of the insured investment 

unless a lower coverage ceiling is elected. There is 

no charge for the difference between the coverage 

ceiling and the active amount.

For most other investment types, premiums are 

computed based on a maximum insured amount 

36 PROGRAM HANDBOOK

24911_P01_60 36 4911_P01_60 36 
(MIA), a current insured amount (CIA) and a 

standby amount. The MIA represents the maximum insurance available for the insured investment under an insurance contract. The CIA 

represents the insurance actually in force during 

any contract period. The difference between 

the MIA and CIA is the standby amount. Separate premiums are charged for CIA and standby 

amounts. For loans, premiums are charged on 

the “covered amount,” the amount of disbursed 

principal plus accrued interest less principal paid to 

date, and a standby fee is charged for undisbursed 

principal.

PREMIUM BASE RATES

Rates may fall outside of the ranges shown in the 

tables, depending on the risk profile of the project. 

The ranges shown also are subject to change without notice. Once an insurance contract is executed, the rates are fixed for the life of the contract. 

OPIC insurance contracts generally require that 

premiums be paid annually in advance.

OPIC’s base rates are listed on pages 38 and 39 and 

are available on the OPIC Web site: 

www.opic.gov/insurance/products/rates.htm

AVAILABILITY, EXTENT OF 

COVERAGE AND CLAIMS

Availability

OPIC insurance may not be available for certain 

coverages, or there may be limitations for underwriting or other reasons. Investors should consult 

OPIC’s Web site at www.opic.gov/generalopic/

ctrylist.htm regarding availability of its programs in 

particular countries.

WWW.OPIC.GOV 37

24911_P01_60 37 4911_P01_60 37 
MANUFACTURING SERVICES

Annual Base Rates per $100 of Coverage

Coverage Active/Current Standby

Inconvertibility $0.25–$0.45 $0.20

Expropriation $0.50–$0.70 $0.20

Political Violence*

Business Income $0.30–$0.50 $0.20

Assets $0.40–$0.60 $0.20

* Discounted rates may be available for combined business

income and assets political violence coverages.

INSTITUTIONAL LOANS AND LEASES

Annual Base Rates per $100 of Coverage*

Covered Coverage

Amount**

Undisbursed

Principal

Inconvertibility $0.35–$0.55 $0.20

Expropriation $0.40–$0.75 $0.20

Enhanced

Inconvertibility

$0.55 $0.20

Political Violence $0.35–$0.65 $0.20

 * Discount rates may be available for combinations of coverages.

** The covered amount is the amount of disbursed principal

plus accrued interest, less principal repaid to date.

OIL AND GAS

Annual Base Rates per $100 of Coverage

Coverage Exploration Development/

Production

Stand

$0.20–$0.40 $0.20–$0.40 $0.20

$0.35–$0.50 $1.35–$1.60 $0.20

$0.65–$0.85 $0.65–$0.85 $0.20

$0.35–$0.55 $0.35–$0.55 $0.20

Inconvertibility

Expropriation

Political Violence

Interference

with Operations

38 PROGRAM HANDBOOK

24911_P01_60 38 
INFRASTRUCTURE/NATURAL RESOURC

(EXCEPT OIL AND GAS)

Annual Base Rates per $100 of Coverage

Coverage Active/Current Standby

Inconvertibility $0.25–$0.45 $0.20

Expropriation $0.55–$0.85 $0.20

Political Violence

Business Income $0.30–$0.55 $0.20

Assets $0.40–$0.75 $0.20

CONTRACTORS AND EXPORTERS

Annual Base Rates per $100 of Coverage

Coverage Current Standby

Inconvertibility $0.25–$0.45 $0.20

Expropriation $0.50–$0.70 $0.20

Political Violence $0.40–$0.60 $0.20

Bid Bonds $0.40–$0.60 $0.20

Performance, Advance

Payment and Other

Guaranties

$0.50–$0.65 $0.20

Disputes $0.60–$0.80 $0.20

CAPITAL MARKETS

Annual Base Rates per $100 of Coverage

Coverage Active/Current Standby

Enhanced

Inconvertibility $0.60 $0.20

WWW.OPIC.GOV 39

24911_P01_60 39 
40 PROGRAM HANDBOOK

Extent of Coverage

Term

Insurance policies for equity coverage are available for up to 20-year terms. For loans, leases 

and transactions covered by the contractors and 

exporters insurance product, the term is generally 

equal to the duration of the underlying contract or 

agreement.

Self-Insurance Requirement 

OPIC can insure up to 90 percent of an eligible 

investment. OPIC’s statute generally requires 

that investors bear the risk of loss of at least 10 

percent. However, loans and leases from financial 

 institutions to unrelated third parties may be insured for 100 percent of principal and interest.

Coverage Multiples

For equity investments, OPIC typically issues 

insurance commitments equal to 270 percent of 

the initial investment—90 percent representing 

the original investment, and 180 percent to cover 

future earnings. Coverage amounts may be limited 

for investments in countries where OPIC has a 

high portfolio concentration.

Claims

OPIC, in cooperation with the U.S. investor, other 

U.S. government agencies, the local United States 

embassy, and the host government, works to avert 

potential claim situations before they materialize. 

OPIC’s claim process is designed to ensure that 

OPIC protects the taxpayer, preserves the project, 

if possible, and pays valid claims. When OPIC has 

paid or settled claims, its recovery rate has been 

outstanding.

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APPLICATION PROCEDURES

Registration

Investors are required to register projects with 

OPIC before the investment has been made or 

irrevocably committed. Registration is free of 

charge and, to the extent permitted by law, treated 

as confidential business information. To register, 

an investor must submit Form 50—Request for 

Registration for Political Risk Insurance. Upon 

receipt of Form 50, OPIC will send a confirmation 

letter and application forms. A registration is valid 

for two years, and may be renewed in one-year 

increments. Registration of a project is nonbinding, 

and in no way constitutes a commitment to issue 

insurance, nor does it indicate that OPIC’s eligibility criteria have been met.

Application

Once the final form of an investment is determined, an investor must submit Form 52—Application for Political Risk Insurance. OPIC also has 

specialized application forms for bid bonds (Form 

228), contractors and exporters (Form 81), and oil 

and gas (Form 52 Supplement). The applications 

provide OPIC with detailed information necessary 

to determine a project’s eligibility and underwriting risks. OPIC will charge a retainer fee after the 

submission of an application in order to proceed 

with review of the project.

For More Information

OPIC insurance registration and application forms 

are available online at www.opic.gov/forms/forms.

htm or written requests may be sent to:

Overseas Private Investment Corporation 

Applications Officer, Insurance Department 

1100 New York Avenue, N.W.

Washington, D.C. 20527

24911_P01_60 41 4911_P01_60 41 
Investment Funds

24911_P01_60 42 
WWW.OPIC.GOV 43

OPIC’s Investment Funds program mobilizes

private capital for direct equity investment by

qualifi ed fund managers in private companies

located in developing countries and emerging markets. By doing so, OPIC is helping to

bridge the enormous gap that exists in these

markets between the supply of, and the need

for, risk capital.

Private equity capital is widely recognized as a

key engine of entrepreneurial activity, technical

innovation, job creation, and economic growth.

Yet, the amount of private equity capital available in the developing world is a small fraction

of that on offer to businesses in the U.S. and

Europe. Thus, the emerging markets, with approximately 75 percent of the world’s population, account for only 10 percent of total global

market capitalization.

OPIC is one of the largest providers of private

equity capital to the emerging markets. Since

the fi rst OPIC-supported investment fund in

1991, OPIC’s funding commitments (as of FY

2005) are approaching $3 billion to more than

30 private equity funds. These funds in turn

have invested $2.7 billion in more than 390

privately owned and managed companies—the

vast majority of which are small or mediumsized entities—located across 53 developing countries and emerging markets that are

eligible for OPIC support.

24911_P01_60 43 
44 PROGRAM HANDBOOK

The developmental benefi ts to emerging economies of 

the risk capital mobilized by OPIC are not limited to the 

amounts invested. Private equity fund managers bring 

not just capital but expertise, experience and networks 

to the companies in which they invest, all directed toward the goal of building value and generating growth. 

Fund managers guide the strategic direction of companies, participate actively on company boards, and help 

companies recruit experienced operational managers. 

Given that management skill and experience is often 

scarce in emerging markets, the development benefi ts 

of this mobilization of expertise are substantial and farreaching: better productivity, reliable fi nancial controls, 

improved corporate governance, modern business practices, and improved health and safety. Moreover, private 

equity funds are active advocates for improved local 

legal and regulatory environments, respect for private 

property and shareholder rights, and the development o

robust capital and fi nancial markets.

By supporting top fund managers across the emerging 

markets, OPIC seeks not only to provide immediate 

benefi ts to the countries and companies in which the 

funds invest, but to demonstrate to the billions of 

dollars represented by private institutional investors 

currently sitting on the sidelines of investing in these 

countries, that emerging markets private equity is an 

attractive asset class.

OPIC mobilizes risk capital for emerging markets by 

providing (through a guaranty program) debt capital 

to private equity funds. OPIC’s support is combined 

with funds raised from private sector institutions and 

invested in private companies in these markets. OPIC 

is thus a creditor of the funds it supports, providing in 

most instances approximately one-third of the fund’s 

total capital, and receiving debt returns on its investment. The structure of the debt is typically analogous 

to that of a zero coupon loan, with most of the interest expense capitalized until the fund liquidates its 

investments.

24911_P01_60 44 4911_P01_60 44 
WWW.OPIC.GOV 45

OPIC utilizes an open, competitive process in selecting 

fund managers, which is initiated periodically through 

the publication of a “call for proposals” in private 

equity trade journals and on OPIC’s Web site. Typically teaming with a prominent private equity advisory 

consultant, a selection committee established within 

OPIC conducts extensive manager evaluation and due 

diligence prior to recommending any proposal for OPIC 

support. Any fund manager meeting the selection criteria published in the call will be considered, but only 

the managers that best fulfi ll such criteria are selected.

To ensure that OPIC’s Investment Funds program operates on a self-sustaining basis, refl ects current policy 

priorities, and addresses the dynamics of the private 

equity market, OPIC utilizes asset allocation planning 

to coordinate its response to policy initiatives and 

market needs while maintaining a diversifi ed portfolio 

of funds.

OPIC’s support may not be used for investments that 

displace U.S. employment. Indeed, OPIC’s Investment 

Funds program strengthens economic growth at home 

through the connections that may be established 

between U.S. companies and the businesses supported 

overseas, such as joint ventures, franchising, and supply and distribution arrangements. In addition, OPIC 

actively monitors and conducts periodic reviews of the 

funds it supports and their portfolio company investments to ensure compliance with OPIC’s requirements with respect to the environment, health and 

safety, and worker and human rights.

For More Information

Consult OPIC’s Web site: www.opic.gov/

investmentfunds/fundlist.htm

Or written requests may be sent to:

Overseas Private Investment Corporation 

Vice President, Investment Funds Department 

1100 New York Avenue, N.W.

Washington, D.C. 20527

24911_P01_60 45 4911_P01_60 45 
Special Products for U.S.

Small and Medium-Sized

Businesses

24911_P01_60X1.indd 24911_P01_60X1.indd 46 
WWW.OPIC.GOV 47

OPIC is committed to helping America’s small

and medium-sized enterprises (SMEs) grow

through fi nancially sound investments in emerging markets around the world. SMEs are the

enterprises best positioned to enter emerging

markets and have a positive impact on economic growth, productivity and modernization.

SMEs bring expertise to their markets and

 create competition.

OPIC recognizes that SMEs looking to participate in the global marketplace have unique requirements. Lack of resources to pursue opportunities abroad, concern over political risks, or

the inability to fi nd private sector support can

prevent SMEs from expanding overseas.

OPIC’s Small and Medium Enterprise Finance

Program, and Small Business Center help meet

these needs by providing fi nancing and political risk insurance to eligible businesses.

24911_P01_60 47 
48 PROGRAM HANDBOOK

SMALL AND MEDIUM ENTERPRISE 

(SME) FINANCE PROGRAM

OPIC’s SME Finance Department is well equipped 

to assist SMEs in their start-up or expansion efforts. The SME Finance Department is made up of 

teams of finance professionals, with considerable 

experience in SME finance transactions.

OPIC’s SME Finance Program is available for businesses with annual revenues under $250 million. 

U.S. small businesses with annual revenues less 

than $35 million are eligible for Small Business 

Center (SBC) programs.

To the extent that a transaction may qualify under 

the SME or the SBC program, the sponsor may select the program that is most suitable to its needs.

SMALL BUSINESS CENTER (SBC) 

PROGRAM

Building on OPIC’s outreach efforts to the small 

business community, the SBC offers qualified 

small businesses the opportunity to utilize OPIC’s 

resources with improved customer service, flexible 

coverage, and easier access through a streamlined 

approval and loan documentation process. Recognizing the financing needs facing many small 

businesses, the SBC is committed to considering 

all complete applications within a 60-day period. 

Loan amounts for overseas investments range from 

$100,000 to $10 million with terms from 3–15 

years. Interest rates will generally range from 4 

percent to 6 percent above OPIC’s cost of funds 

24911_P01_60 48 4911_P01_60 48 
WWW.OPIC.GOV 49

for comparable maturities*. In addition, there may 

be an up-front retainer fee, a one-time facility fee 

of up to 2 percent (due at loan signing or fi rst disbursement) and an annual maintenance fee.

Requirements for SME 

and SBC Programs

Eligible U.S. small businesses must own at least 25 

percent of the equity in the project, although other 

significant involvement in the project by U.S. 

small businesses will be considered for purposes of 

eligibility determination. Exceptions to the amount 

of equity required may be made in cases where U.S. 

brand name franchisors, operators, or contractors 

are significantly involved in the project.

OPIC will not support projects that could result 

in the loss of U.S. jobs, adversely affect the U.S. 

economy or the host country’s development or 

environment, or contribute to worker and human 

rights violations.

SBC POLITICAL RISK PROTECTION 

PROGRAM

To protect a U.S. small business’s overseas investment against political uncertainties overseas, the 

SBC provides insurance against loss or damage 

resulting from political violence, such as terrorism 

or war, nationalization or expropriation by a foreign government, or the inability to convert local 

currency and repatriate profits. Businesses receiving SBC loans can utilize OPIC’s insurance “wrap” 

which provides political risk insurance at a reduced 

* OPIC cost of funds is set by the U.S. Treasury 

in publication H15 under the heading ‘Constant 

Maturities.’ These Treasury rates can be found at: 

www.federalreserve.gov/releases/h15/current

24911_P01_60 49 4911_P01_60 49 
50 PROGRAM HANDBOOK

rate. The SBC loan borrower may elect this insurance coverage for up to $6 million of its equity 

investments. Pricing will be based on a one-time 

fee for the life of the OPIC loan up to 15 years. For 

non-borrowers, OPIC’s regular insurance product is 

available. There are no minimum investment size 

requirements for either product.

Application Process

For financing, the small business must submit 

a completed finance application, including all 

required attachments to the application, such 

as a formal business plan, financial projections, 

financial statements and sponsor disclosure forms. 

The small business does not need to submit any 

additional information for the insurance wrap. 

However, non-borrowers who want political risk 

protection must register their project, complete 

an insurance application, and provide a formal 

business plan. The approval process will generally 

take 60 days from the time of submission of all 

completed documents.

For More Information

For more information on OPIC’s SME programs, 

please visit OPIC’s Web site at www.opic.gov or 

contact:

Overseas Private Investment Corporation

Information Offi cer, Offi ce of External Affairs

1100 New York Avenue, N.W.

Washington, D.C. 20527

Or call 202-336-8799 or send an email to 

info@opic.gov

24911_P01_60 50 
24911_P01_60 51 4911_P01_60 51 
Additional Information

24911_P01_60 52 
WWW.OPIC.GOV 53

OPIC COUNTRIES AND AREAS

OPIC programs encourage U.S. private investment in some 150 countries and areas around

the world, contributing to economic growth at

home and abroad.

OPIC programs are generally available in the

countries and areas listed on the following

pages. From time to time, statutory and policy

constraints may limit the availability of OPIC

programs in certain countries, or countries

where programs were previously unavailable

may become eligible. Investors are urged to

contact OPIC directly or check the Web site

www.opic.gov/GeneralOPIC/ctrylist.htm for

up-to-date information regarding the availability

of OPIC services in specifi c countries, as well as

information on program availability in countries

not listed.

24911_P01_60 53 
54 PROGRAM HANDBOOK

Africa and the 

Middle East

Algeria

Angola

Bahrain

Benin

Botswana

Burkina Faso

Cameroon

Cape Verde

Central African Republic

Chad

Congo, Democratic 

Republic of

Congo, Republic of

Djibouti

Egypt

Equatorial Guinea

Eritrea

Ethiopia

Gabon

Gambia

Ghana

Guinea

Guinea-Bissau

Iraq

Israel

Jordan

Kenya

Kuwait

Lebanon

Lesotho

Madagascar

Malawi

Mali

Mauritania

Mauritius

Morocco

Mozambique

Namibia

Niger

Nigeria

Oman

Rwanda

São Tomé and Príncipe

Senegal

Sierra Leone

Somalia

South Africa

Swaziland

Tanzania

Togo

Tunisia

Uganda

West Bank and Gaza

Yemen

Zambia

Zimbabwe

Asia and the 

Pacifi c

Afghanistan 

Bangladesh

Cambodia

Cook Islands

East Timor

Fiji

India

Indonesia

Kiribati

Laos

Malaysia

Marshall Islands

Micronesia

Mongolia

Nepal

Pakistan

Palau

Papua New Guinea

Philippines

Samoa

Singapore

(As of September 30, 2005)

24911_P01_60 54 4911_P01_60 54 
WWW.OPIC.GOV 55

South Korea

Sri Lanka

Taiwan

Thailand

Tonga

Vietnam

Europe and the 

New Independent 

States

Albania

Armenia

Azerbaijan

Bosnia and Herzegovina

Bulgaria

Croatia

Cyprus

Czech Republic

Estonia

Georgia

Greece

Hungary

Ireland

Kazakhstan

Kosovo

Kyrgyzstan 

Latvia

Lithuania

Macedonia

Malta

Moldova

Northern Ireland

Poland

Portugal

Romania

Russia

Serbia and Montenegro

Slovakia

Slovenia

Tajikistan

Turkey

Turkmenistan

Ukraine

Uzbekistan

Latin America and 

the Caribbean

Anguilla

Antigua and Barbuda

Argentina

Aruba

Bahamas

Barbados

Belize

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominica

Dominican Republic

Ecuador

El Salvador

French Guiana

Grenada

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Netherlands Antilles

Nicaragua

Panama

Paraguay

Peru

St. Kitts and Nevis

St. Lucia

St. Vincent and the 

Grenadines

Suriname

Trinidad and Tobago

Turks and Caicos

Uruguay

24911_P01_60 55 4911_P01_60 55 
56 PROGRAM HANDBOOK

CONTACTING OPIC 

General Information

OPIC on the Internet

If you have access to the Internet, visit OPIC’s Web 

site at the address below for a wide variety of publications, application forms, press releases, OPIC’s 

free electronic newsletter and other information, 

including updates on the information contained in 

this document. www.opic.gov

Electronic Mail

To obtain general information via electronic mail, 

requests may be sent to: info@opic.gov

Written Inquiries

Written requests for general information may be 

sent to: 

Overseas Private Investment Corporation 

Information Officer, Offi ce of External Affairs 

1100 New York Avenue, N.W.

Washington, D.C. 20527

The OPIC Infoline

OPIC maintains an automated, 24-hour-a-day 

system to provide callers with general information 

on OPIC’s insurance and financing programs. The 

OPIC Info Line telephone number is: 202-336-8799

24911_P01_60 56 4911_P01_60 56 
Finance Information

• information concerning financing for specific 

projects

• Form 115—Application for Financing

• Form 115 Supplement—Supplement Guidelines 

for the OPIC Application for Financing 

• Form 129—Sponsor Disclosure Report

may be sent to:

Overseas Private Investment Corporation 

Information Offi cer, Offi ce of External Affairs

1100 New York Avenue, N.W.

Washington, D.C. 20527

Or email us at: info@opic.gov

Or online at: www.opic.gov/forms/forms.htm 

Insurance Information

Written requests for 

• information on insurance for specific projects

• Form 50—Request for Registration for Political 

Risk Insurance

• Form 52—Application for Political Risk 

Insurance

• other specialized insurance forms (see page 41)

may be sent to:

Overseas Private Investment Corporation 

Applications Officer, Insurance Department

1100 New York Avenue, N.W.

Washington, D.C. 20527

Or online at: www.opic.gov/forms/forms.htm

WWW.OPIC.GOV 57

24911_P01_60 57 4911_P01_60 57 
58 PROGRAM HANDBOOK

Investment Funds Information

Written requests may be sent to:

Overseas Private Investment Corporation 

Vice President, Investment Funds Department 

1100 New York Avenue, N.W.

Washington, D.C. 20527

Or online at: www.opic.gov/investmentfunds

Small Business Information

Written inquiries may be sent to:

Overseas Private Investment Corporation 

Information Offi cer, Offi ce of External Affairs

1100 New York Avenue, N.W.

Washington, D.C. 20527

Telephone Inquiries 

202-336-8799

Contact us online at: www.opic.gov 

Or email us at info@opic.gov 

24911_P01_60 58 4911_P01_60 58 
U.S. GOVERNMENT 

INTERNATIONAL TRADE 

INFORMATION

The U.S. government has established a comprehensive source—the Trade Information Center 

(TIC)—for information on federal export assistance programs. Housed at the U.S. Department of 

Commerce, the TIC provides information on:

• Export Questions

• Country Information

• Export Program Guide

• Tax and Tariff Information

• Export Resources

• Trade Office

• Trade Events

• Industry Information

The TIC’s international trade specialists can be 

reached weekdays from 8:30 a.m. to 5:30 p.m. Eastern Standard Time at:

• Phone: 800-USA-TRADE (1-800-872-8723)

• TDD: 1-800-TDD-TRADE (1-800-833-8723)

• Internet: www.trade.gov/td/tic

• Fax: 202-482-4473

Photography Credits

Front Cover: Thatcher Cook, for International 

 Rescue Committee 

Page 4: ProCredit Holding AG 

Page 12: Joseph Wozniak, OPIC 

Page 22: Apache Corporation 

Page 42: Apache Corporation 

Page 46: Joseph Wozniak, OPIC

Page 52: Barbara Gibian, OPIC 

WWW.OPIC.GOV 59

24911_P01_60 59 4911_P01_60 59 
NOTES

24911_P01_60 60 4911_P01_60 60 
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WWW.OPIC.GOV

AN AGENCY OF

THE UNITED STATES

GOVERNMENT

1100 NEW YORK AVE., NW

WASHINGTON, D.C. 20527

202.336.8799

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