The Overseas Private Investment Corporation (OPIC), an agency of the US government that facilitates investment by US-based firms in developing countries, recently loaned Banco Regional SAECA USD 138 million for on-lending to small and medium-sized enterprises in Paraguay. A portion of the loan proceeds are intended to increase financing options for women-owned and -operated businesses as a part of OPIC’s 2X Women’s Initiative. Through this initiative, OPIC has committed to invest “USD 350 million in projects that will support lending to women-owned businesses, female entrepreneurs, as well as women-owned and women-led emerging market private equity funds.” In partnership with development finance institutions from the Group of 7 (G7) high-income countries, OPIC plans 2X will mobilize USD 3 billion for women’s financial empowerment in developing regions by 2020.
Founded in 1991, Banco Regional is a government-owned provider of banking, insurance and brokerage services in Paraguay. The bank focuses on delivering services to agricultural and other rural customers through 38 branches. As of 2017, the bank reports total assets of PYG 14.6 trillion (USD 2.4 billion), deposits of PYG 9.2 trillion (USD 1.5 billion), a loan portfolio of PYG 11.2 trillion (USD 1.8 billion), return on equity of 24.5 percent and return on assets of 2.3 percent.
Established in 1971, OPIC is an agency of the US government whose function is to promote economic partnerships and invest in areas deemed important to US interests. OPIC provides loans, grants, advisory services and political-risk insurance to private equity funds and financial institutions as well as projects in the healthcare, energy, technology and education sectors. During 2018, the organization mobilized total capital of USD 10.6 billion from both the public and private sectors, closing the year with 112 active projects.
By Umit Naz Deryaoglu, Research Associate
Sources and Additional Resources
OPIC press release
https://www.opic.gov/press-releases/2018/opic-board-approves-more-13-billion-development-projects-africa-indo-pacific-and-latin-america
OPIC loan summary
https://www.opic.gov/sites/default/files/files/9000083170.pdf
Banco Regional homepage
https://www.regional.com.py
Banco Regional 2017 financial report
https://www.regional.com.py/documentos/Memoria%20Regional%202017%20-%20Ingl%C3%A9s.pdf
OPIC’s 2X Women’s Initiative
https://2x.opic.gov
OPIC homepage
https://www.opic.gov
MICROCAPITAL BRIEF: G7 Nations Triple OPIC Target, Pledge to Mobilize $3b for 2X Challenge for Women Entrepreneurs
https://www.microcapital.org/microcapital-brief-g7-nations-triple-opic-target-pledge-to-mobilize-3b-for-2x-challenge-for-women-entrepreneurs/
MICROCAPITAL BRIEF: OPIC Loans $150m to Banco Industrial for Affordable Housing in Guatemala
https://www.microcapital.org/microcapital-brief-opic-loans-150m-to-banco-industrial-for-affordable-housing-in-guatemala/
MICROCAPITAL BRIEF: Banco Sudameris, OPIC, Citi Cooperate on $125m Loan Package for SMEs in Paraguay, Focusing on Women Entrepreneurs
https://www.microcapital.org/microcapital-brief-banco-sudameris-opic-citi-cooperate-on-125m-loan-package-for-smes-in-paraguay-focusing-on-women-entrepreneurs/
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