OPIC PRESENTATION By A.ELMI.AHMED Private Sector The U.S. Government's Development Finance

InstitutionOPIC mobilizes private capital to help solve critical

development challenges and in doing so, advances U.S. foreign policy

OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets.

OPIC catalyzing revenues, jobs and growth opportunities both at home and abroad.

OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

Facilitate U.S. investment and participation in projects by providing:

Political Risk InsuranceProject Finance

Investment Funds

Assist in the economic growth by facilitating private investment in projects sponsored by private enterprises

Operate on a self-sustaining basis by supporting commercial viable projects on commercial terms

What OPIC Does

Division of US Treasury

Economically sound, commercially viable, private sector project

Positive country development effect

No negative effect on U.S. economy

Environmentally soundInternationally recognized

worker rights enforced

ProjectRequirements

Protect against currency Inconvertibility

ExpropriationProvides comfort to banks,

suppliers and shareholdersOPIC reserves exceed $5 billionFull faith and credit of the

United States

Protect against currency Inconvertibility

ExpropriationProvides comfort to banks,

suppliers and shareholdersOPIC reserves exceed $5 billionFull faith and credit of the

United StatesWhy OPIC is an advantage to Djibouti Investors

Characteristics of OPIC finance:Non- recourse, long-term

financeLoan amounts up to $250

million Require 25% U.S. equity stake, Can co-finance if we should

add other debt financing but likely unnecessary

Djibouti Project will not require Board approval allowing for a faster loan approval

Investment Finance:

Projects must be controlled by private sector

Sound financial planCash flow adequate to service

debt which will likely be around 6-8 percent

Ability to complete the project was begun

Few Key Points

OPICInsurance

U.S.Banks

LocalFinancing

Sp. Purp.Entity

Project

OPIC Loan

DjiboutiInvestor

U.S.Sponsor

Structure of OPIC Support

Excellent Growth

OPIC supports projectsOPIC supports projects in energy, agriculture,

financial services and other sectors in more than 150 countries

While the Overseas Private Investment Corporation is authorized to operate in 150 developing nations around the world, and supports projects in a range of industries from energy to housing, agriculture and financial services

 it focuses its work on regions where the need is greatest and in sectors that can have the greatest developmental impact.

In recent years, OPIC has increasingly focused on projects that encourage the use of renewable resources.

OPIC supports projectsIn addition to longstanding priority regions

such as Sub-Saharan Africa, OPIC responds quickly to shifts in the political and regional landscape.

Events of the Arab Spring in 2011 have led to increased commitments throughout the Middle East and North Africa (MENA) region.

OPIC has also strengthened its focus on Southeast Asia, supporting projects that will deliver developmental benefits to a region enjoying dramatic economic growth.