MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC), Citi to Share Risk on $550m Global Loan Facility, $220m Inclusive Growth Agreement

The Overseas Private Investment Corporation (OPIC), a development agency of the US government, reportedly has entered agreements with Citi, a US-based financial services corporation, to share credit risk for the financing of investments in an unspecified number of the 150 OPIC-eligible countries with a USD 550 million loan facility for general investments and a USD 220 million loan facility to support financial inclusion. In a risk-sharing partnership that dates back to 2003, OPIC will provide partial loan guarantees for Citi’s investments. The loan facilities seek to promote business development and access to capital for the financially underserved.

As of 2012, OPIC listed net income of USD 272 million and a total portfolio of USD 16.4 billion. Citigroup reports operations in 160 countries, and reported total assets of USD 1.9 trillion and total deposits of USD 938 billion as of 2013.

By Meraj Husain, Research Associate

About Overseas Private Investment Corporation (OPIC)

The Overseas Private Investment Corporation (OPIC) is an arm of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US with the goal of creating an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of 2012, OPIC listed net income of USD 272 million and a total portfolio of USD 16.4 billion. OPIC has active projects in 150 countries as of 2013.

About Citigroup

Citigroup is a financial services corporation with its headquarters in New York. Citigroup offers services in approximately 160 countries, including consumer and commercial banking, brokerage, asset management and institutional securities and transactions services. Citigroup’s philanthropic activities are carried out by the Citi Foundation. As of June 2013, Citigroup reported total assets USD 1.9 trillion and total deposits of USD 938 billion.

Sources and Additional Resources

[1] Overseas Private Investment Corporation: “OPIC Board of Directors Approves Risk-Sharing Frameworks with Citi,” http://www.opic.gov/press-releases/2014/opic-board-directors-approves-risk-sharing-frameworks-citi

MicroCapital, March 21, 2014, “Overseas Private Investment Corporation (OPIC) Lends $45m to FINCA Microfinance Holdings to Increase Outreach, Range of Services,” https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-lends-45m-to-finca-microfinance-holdings-to-increase-outreach-range-of-services/

MicroCapital, January 27, 2014, “Citigroup, Overseas Private Investment Corporation (OPIC) Lend $10m to Bank of Georgia to Support Financial Inclusion of Micro-, Small Enterprises (MSEs),” https://www.microcapital.org/microcapital-brief-citigroup-overseas-private-investment-corporation-opic-lend-10m-to-bank-of-georgia-to-support-financial-inclusion-of-micro-small-enterprises-mses/

MicroCapital, October 7, 2013, “OPIC to Support Citi in Loaning up to $200m to Support Small Businesses in Africa, Asia, Eastern Europe, Latin America,” https://www.microcapital.org/microcapital-brief-opic-citi-to-loan-up-to-200m-to-support-small-businesses-in-africa-asia-eastern-europe-latin-america/

MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29

MicroCapital Universe Profile: Citigroup
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citigroup

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