Tripled Capital Mobilization to $4.4 Billion; Led Investor Response to Arab Spring; Posted a Record Year in Renewable Resources; Committed Nearly $1 Billion in Financing for Small and Medium-sized American Businesses
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, generated net income of $269 million in Fiscal Year 2011, helping to reduce the federal budget deficit for the 34th consecutive year.
In addition to generating revenue for the U.S. taxpayer, OPIC recorded a three-fold increase in the amount of capital the agency’s financing mobilized, rising to $4.4 billion.
In fiscal year 2011, OPIC committed $3.2 billion to companies expanding into emerging markets and supported 92 new investment projects in the power sector, hotels and housing, telecommunications and other infrastructure, as well as many other sectors like agriculture, education and microfinance. Consistent with its focus on supporting U.S. small and medium-sized enterprises, in FY2011, 78 percent of OPIC’s projects, representing nearly $1 billion in commitments, involved American small and medium-sized businesses.
OPIC responded quickly to the events of the Arab Spring, targeting up to $3 billion in financial support for investment and job creation in the Middle East and North Africa. Since setting that goal, the agency has already approved $657 million in transactions for the region, mainly to support investments in small business.
This year, OPIC also lent powerful support to U.S. companies seeking investment opportunities in the high growth renewable resources sector in emerging markets. Its commitment of $1.1 billion in financing and insurance to the sector in FY2011 represented a roughly three-fold increase over last year’s figure. Financing was provided to companies investing in a wide range of projects and regions: solar projects in Peru, India and Thailand, hydropower in Georgia, geothermal in Kenya and biomass in Liberia, among many others. Projects supported by OPIC in FY2011 will generate nearly 728 megawatts of electricity from renewable energy sources, more than a ten-fold increase from FY2010, and help avoid nearly one million tons of CO₂ emissions annually.
“OPIC generated net income and contributed to the reduction of the budget deficit for the 34th consecutive year,” said OPIC President and CEO Elizabeth Littlefield. “We did this while out performing on our core mission of mobilizing U.S. private capital to catalyze markets and support development in developing countries. OPIC’s work tangibly and profitably advances both U.S. interests and economic development abroad.”
“OPIC projects delivered important economic, environmental and developmental benefits to local populations that will make both the partner countries and the United States more secure and prosperous,” Ms. Littlefield said.
OPIC’s earnings were generated through financing and insurance provided to support U.S. private investment overseas, as well as interest earned on reserves. Those investments helped foster economic development in new and emerging markets, advance U.S. national security, and support growth in U.S. jobs and exports.
OPIC’s financial statements were audited by an independent accounting firm in accordance with Generally Accepted Accounting Principles (GAAP) as well as government audit standards specified by the Comptroller General of the United States and the Office of Management and Budget.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets 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.
Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported more than $200 billion of investment in over 4,000 projects, generated an estimated $75 billion in U.S. exports and supported more than 276,000 American jobs.