Overseas Private Investment Corporation

March 2015

Government Investment Officers

Association Conference

Stephen M. Feeney, Managing Director – Capital Markets

The U.S. Government's Development Finance Institution 1

What is OPIC?

The U.S. Government's Development Finance Institution 2

• US Government Agency established in 1971 by the Foreign Assistance Act

• US Government’s Development Finance Institution

• For Profit, Self-Sustaining US Government Agency

Operates at no Cost to the US Taxpayer

Net positive cash flows annually to the US Treasury

• Total Capital and Reserves Exceeding $4.5 Billion

• Independent Board of Directors Appointed by POTUS

What is OPIC? - Objectives

The U.S. Government's Development Finance Institution 3

Catalyze Emerging Market Development

Support US Private Sector Investment in Emerging Markets

Generate Self-Sustaining Financial Returns for OPIC

What is OPIC? - Four Businesses:

The U.S. Government's Development Finance Institution 4

1. Project/Structured Finance

2. Small Business Lending

3. Political Risk Insurance

4. Investment Funds71%

17%

12%

% of OPIC's $18 Billion Portfolio

Investment Funds

Political RiskInsurance

Project/StructuredFinance + SmallBusiness Lending

OPIC Impact

• Over $200 Billion Capital Committed

• More Than 4,000 Projects Financed

• Active Projects Support Over 250,000 Local Jobs

• Open in 150+ Emerging Economies

• Projects Active in 101 of the 150+ Countries

• Significant Economic, Labor and Environmental Policy Standards

The U.S. Government's Development Finance Institution 5

Since Inception

Current Profile

OPIC Financing

The U.S. Government's Development Finance Institution 6

Requires US Ownership Stake and

Equity Capital

Strong Credit and

Underwriting Criteria

Secured by Collateral

OPIC = Senior Secured Lender

$250 Million Maximum

Loan Commitment

OPIC Portfolio – Regionally Balanced

The U.S. Government's Development Finance Institution 7

$2.9 Billion

$2.7 Billion

$5.1 Billion

$3.9 Billion

$3.1 Billion

Europe and Eurasia Asia and the Pacific Latin America and the Caribbean

Sub-Saharan Africa North Africa/Middle East

OPIC Portfolio – Sectorally Diverse

The U.S. Government's Development Finance Institution 8

OPIC Funding - Certificates of Participation: “COPs”

The U.S. Government's Development Finance Institution 9

Backed by the Full Faith and Credit Guarantyof the United States of America

Trade at a Yield Premium to US Treasury Bills, Notes, and Bonds

Available only to US Eligible Investors

OPIC Funding - COPs Structure

The U.S. Government's Development Finance Institution 10

CollateralGuaranty

P-Note

Loan

COPs

100%

$ $

Placement Agent

US Equity Sponsor

OPIC Borrower

OPIC Funding - COPs Features

The U.S. Government's Development Finance Institution 11

Full Faith and Credit Guaranty of the United States of America

Each Transaction Supports a Discrete Asset

Singular and Specific Use of Proceeds – Not an Asset Basket/Pool–

Investors Earn Spreads Above US Treasury Yields for US Government Risk When Comparing Similar Structures and Like Maturities

Generally Small Offerings ($30 Million to $50 Million)• Prudent Lending Discipline• Discerning Underwriting Standards

OPIC Funding - COPs Flavors

The U.S. Government's Development Finance Institution 12

• Fixed Rate • Current-Pay Interest• Defined Principal Amortization – Similar to Sinking Fund• Pricing Base = US Treasury Notes/Bonds

• Fixed Rate• Interest Accrues, Accretes and Compounds - Paid at Final Maturity • No Principal Amortization - Bullet-Maturity Including Interest• Elements of Zero-Coupon Structure• Pricing Base = US Treasury STRIPs

• Floating Rate – Weekly Rate Reset• Current–Pay Interest• Defined Principal Amortization• Investor Tender/Put Option = Substantial 7-Day Liquidity• Pricing Base = US Treasury Bills

OPIC Funding - COPs Market Spread

Periodic Amortization – Reinvestment Risk in Certain Structures

The U.S. Government's Development Finance Institution 13

Unpredictable Issuance Profile• No Quarterly Market Entrances• Offerings only when Individual OPIC Deals Require Funding

Small Issuance Amount per Financing ($30M-$50M)• Despite OPIC’s $250M Maximum Loan Commitment Amount

Growing Market Float ($6 Billion Outstanding)

Secondary Market Development and Expansion

Potential Prepayment at any Time with Advance Notice

10-Yr UST Note (2.52%)

0.68%3.20%

Fixed Rate

OPIC Funding COPs – Recent Returns (Fixed or Floating)

The U.S. Government's Development Finance Institution 14

2-Yr

UST STRIPS

(0.62%)

0.31%0.93%

Fixed Rate

91-Day T-Bill

(0.02%)0.09%

0.11%

Floating Rate

Pricing Base + Market Spread = Investor Return

OPIC COPs Portfolio

The U.S. Government's Development Finance Institution 15

Fixed Rate65%

Floating Rate35%

Total Portfolio Fixed/Floating

Banks7%

Mutual Funds

9%

30%

Fixed Rate PortfolioCOP Holders

Insurance

54%

Banks6%

MutualFunds89%

Floating Rate PortfolioCOP Holders

Pension & Retirement

Funds

Pension & Retirement

Funds4%

Corporations 1%

OPIC COPs - State and Municipal Investors

The U.S. Government's Development Finance Institution 16

City of Seattle

State of Arizona

South Dakota Public Funds

Investment TrustState of Michigan

Retirement System

State of Connecticut

Pennsylvania Turnpike

Commission

Minnesota State Board of

Investments

State of Nebraska

City & County of San Francisco

Iowa Schools Joint Investment

Trust

City of Lakeland Police Officers’ Supplemental

Retirement Fund

Kentucky Teachers’

Retirement

State of Tennessee

Commonwealth of Virginia

OPIC Renewable Energy Transactions

2009 to Present

The U.S. Government's Development Finance Institution 17

Before the Green Bond Principles, OPIC’s COPs Were Already Green

Solar $998.52 Million

Geothermal $753 Million

Water Delivery $308 Million

Wind $24 Million

Hydroelectric 9.62 Million

Total $2.09 Billion

Disbursements to date of $250 Million OPIC Commitment

Solar $910 Million

Geothermal $488 Million

Water Delivery $263 Million

Wind $24 Million

Hydroelectric $5 Million Initial Draw of $250 Million OPIC

Loan Commitment

Total $1.69 Billion

Solar $910 Million

Geothermal $488 Million

Water Delivery $263 Million

Wind $24 Million

Hydroelectric $5 Million Initial Draw of $250 Million OPIC

Loan Commitment

Total $1.69 Billion

Solar $910 Million

Geothermal $488 Million

Water Delivery $263 Million

Wind $24 Million

Hydroelectric $5 Million Initial Draw of $250 Million OPIC

Loan Commitment

Total $1.69 Billion

Solar $910 Million

Geothermal $488 Million

Water Delivery $263 Million

Wind $24 Million

Hydroelectric $5 Million Initial Draw of $250 Million OPIC

Loan Commitment

Total $1.69 Billion

18

OPIC’s Managing Director of Capital Markets