Frequently Asked Questions

What is the Overseas Private Investment Corporation?
The Overseas Private Investment Corporation (OPIC) is a self-sustaining federal agency that sells investment services to small, medium and large American businesses expanding into approximately 150 developing nations and emerging markets around the world. Charging user-fees for its services, OPIC operates at no net cost to the American taxpayer. OPIC’s political risk insurance, project finance and investment funds fill a commercial void, create a level playing field for U.S. businesses and support development in emerging economies. Since 1971, OPIC has supported $150 billion worth of investments that will generate $66 billion in U.S. exports and create more than 257,000 American jobs.

When was OPIC established, and under what branch of the federal government does it fall?
OPIC began operating in 1971. OPIC is a small, independent agency in the executive branch of the federal government, and is not an operating-arm of a larger agency.

How much support can OPIC offer any one project?
OPIC can offer up to $400 million in total project support for any one project -- up to $250 million in project finance and up to $250 million in political risk insurance.

Who are OPIC’s clients, and how large is the client base?
OPIC clients are exclusively American companies. OPIC does not provide direct government-to-
government aid or grants. Currently, OPIC has about 400 active clients including small, medium and large U.S. businesses. Demand for OPIC services has increased, in large measure, due to the demand for large scale private sector infrastructure projects in the developing world. U.S. companies are well positioned to compete for new infrastructure projects which have significant potential to increase U.S. exports and create U.S. jobs. OPIC helps these companies compete with their foreign counterparts for these export-intensive infrastructure projects. And, OPIC helps small U.S. businesses make investments in new markets, offering the kind of individualized support that small businesses need to bring their world-class goods and services abroad.

What does OPIC "political risk insurance" cover?
OPIC’s political risk insurance protects U.S. companies against 1) currency inconvertibility — inability to convert profits, debt service and other returns from local currency into U.S. dollars and transfer those dollars out of the host country; 2) expropriation — loss of an investment due to expropriation, nationalization or confiscation by a foreign government; and 3) political violence — loss of assets or income due to war, revolution, insurrection or politically motivated civil strife, terrorism or sabotage. Coverage is available for equity investments in new ventures or expansions or modernizations of existing enterprises, parent company and third party loans and loan guaranties, technical assistance agreements, cross-border leases and other forms of investment exposure. OPIC also insures contractors, exporters and financial institutions.

To be eligible for insurance, investors must submit an OPIC Request for Registration for Political Risk Insurance form before making an irrevocable commitment to a project. To obtain coverage, companies must pay insurance premiums based on market value.
Request for Registration for Political Risk Insurance: (pdf) (see PDF note)

What kind of financing does OPIC offer?
OPIC provides medium-to long-term funding for new ventures or the expansion or modernization of existing, successful ventures involving significant equity or management participation by U.S. businesses. Rather than relying on foreign government guaranties, OPIC’s limited recourse financing looks for repayment from revenues generated by the project. This allows OPIC to finance projects in countries where conventional financial institutions often are reluctant or unable to lend on such a basis. OPIC loan guaranties, used typically for larger projects, range in size from $10 million to $250 million. OPIC direct loans, reserved for projects involving U.S. small businesses and cooperatives, generally range from $2 million to $30 million. OPIC carefully analyzes the economic, technical, marketing and financial soundness of each project. There must be adequate cash flow to pay all operational costs, to service all debt, and to provide the owners with an adequate return on their investment.

How does OPIC support the U.S. economy?
Since 1971, OPIC has supported $150 billion of investments in the world’s emerging markets and developing nations. These projects, sponsored by American businesses, will purchase an estimated $66 billion in U.S. goods and services to export to their projects which will, in turn, help to create and support more than 257,000 American jobs. Additionally, projects supported by American businesses in the fastest growing economies in the world support American global competitiveness and set U.S. standards worldwide. An OPIC-supported power project in Indonesia, for example, is expected to buy more than $1 billion in U.S. equipment and supplies and support more than 3,000 American jobs.

What role does OPIC play in U.S. foreign policy?
OPIC plays a vital role in implementing America’s foreign policy objective of opening new markets for U.S. businesses and assisting in the economic development of regions of the world that are important to America. OPIC also harnesses private sector resources to encourage democratic and market reforms around the globe. OPIC projects have helped developing countries to generate over $11 billion in host-government revenues and create over 690,000 host-country jobs.

Do other countries provide OPIC-like programs?
All G-8 nations and most developed countries have OPIC-like national agencies providing similar products. Unlike OPIC, many foreign programs are heavily-subsidized by their governments and are, therefore, not self-sustaining. American businesses may purchase OPIC-like services from other G-8 nations, but can only do so if they agree to purchase goods and services sourced in those nations. OPIC services make it possible for American companies to buy U.S. goods made by U.S. workers.

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