OPIC and Citi Strengthen Partnership for Development Financing
By Elizabeth Littlefield, CEO and President, OPIC
April 28, 2014 01:51 PM
Last month, the Overseas Private Investment Corporation's (OPIC) Board of Directors approved two new framework agreements that further align our organization with Citi in sharing credit risk for development financing in overseas projects. OPIC has a history of successful partnerships with commercial lenders financing in emerging markets around the world. By putting OPIC's guarantee behind Citi's loans, borrowers in these markets will now have access to the financing they need to grow and contribute to local economies.
Collaborating with a global institution like Citi allows OPIC to extend its impact and reach clients it might not otherwise reach. These risk-sharing agreements with Citi mean OPIC can move more swiftly to achieve our goals in regions where Citi already operates.
During our decade plus partnership, Citi and OPIC have executed 16 different frameworks totaling $2.8 billion in guarantee capacity. Loans previously guaranteed by OPIC through Citibank have supported large-scale infrastructure projects in underserved regions as well as $290 million in funding to networks of microfinance lenders to support the entrepreneurs who form the foundation of an emerging economy.
These new framework agreements expand this already successful partnership and include a $220 million loan facility for global inclusive finance. This Inclusive Growth agreement will promote business development, expansion and access to finance, supporting a wide range of institutions and strategies to expand market access, secure more sustainable and inclusive supply chains, offering diverse financial services to small producers, distributors and other underserved communities around the world.
*Tagged as: financial development, financial inclusion, inclusive growth, opic, progress