OPIC calls for Proposals for Latin America Funds
04/24/2008
Author:
Overseas Private Investment Corporation
United States
www.opic.gov | Categories:
Private Equity |
Article:
Secretary of Commerce Gutierrez joins Mosbacher for announcement; OPIC financing could leverage up to $1 billion of new private sector investment
MIAMI, Florida – The Overseas Private Investment Corporation (OPIC) will provide financing to new private equity investment funds that will support the growth of capital markets in Latin America, potentially leveraging as much as $1 billion of investment to help the region overcome current market gaps, OPIC President and CEO Robert Mosbacher, Jr. announced today.
U.S. Secretary of Commerce Carlos Gutierrez joined Mosbacher at the announcement, held at the annual meeting of the Inter-American Development Bank.
Effective April 7, OPIC is issuing a call for proposals to manage the fund(s), designed to provide businesses in Latin America with forms of capital in short supply. Proposals are invited to address both public or private capital markets, and debt or equity strategies. The call emphasizes investment in products such as medium- and long-term debt, local currency debt, mezzanine financing, private equity for small and medium-sized enterprises, and new, publicly-listed debt and equity securities.
“Significant gaps in access to investment capital are inhibiting economic growth in Latin America – and for no good reason,” Mosbacher said. “OPIC-supported investment funds have demonstrated that significant returns on investment can be realized in emerging markets anywhere, and we fully expect that to be the case with these new funds.”
“By leveraging investment on a scale not previously seen in the region, we anticipate that these new funds can emerge as some of the most catalytic in OPIC history. Expanding access to capital markets is critical to enabling businesses in Latin America to grow and create new jobs,” Mosbacher said.
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.
OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $177 billion worth of investments that have helped developing countries to generate over $13 billion in host-government revenues and create over 800,000 host-country jobs. OPIC projects have also generated $71 billion in U.S. exports and supported more than 271,000 American jobs.