Overseas Private Investment Corporation

The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. government agency that provides financing and insurance solutions for U.S. investors, lenders, contractors, exporters, and non-governmental organizations that are investing in developing and post-conflict countries.

The Political Risk Insurance protects against losses to tangible assets, investment value and earnings resulting from political perils. It hence helps to mitigate risks in target countries and makes it more appealing for U.S. entities to invest in overseas business opportunities.

Covered risks include:

• Political violence, including war, terrorism, civil strife, coups.
• Expropriation, including repudiation, abrogation, and/or impairment of contract and other improper host government interference.
• Currency inconvertibility: Restrictions on the transfer and conversion of local currency revenues.

OPIC also offers Non-honoring of a Sovereign Guaranty, Breach of Contract for Capital Markets Insurance and Reinsurance as part of their political risk insurance solutions.

Small and large investments that provide positive development benefits and comply with OPIC’s policies on U.S. economic impact, worker rights, human rights and the environment.

Proof must be provided that political risk insurance is not available for the considered investment from the private market at acceptable rates and terms.

Investors need to provide a positive track record and meet criteria of U.S. ownership. Details: https://www.opic.gov/content/eligibility

OPIC provides their instruments in more than 160 developing and post-conflict countries. These are listed here: https://www.opic.gov/doing-business-us/OPIC-policies/where-we-operate

• Size of coverage: Up to 90 per cent. Loans and capital from financial institutions to third parties may be insured for 100 per cent of principal and interest.
• Tenor of coverage: Up to 20 years for equity investment. For loans, leases and transactions covered by the contractor’s and exporter’s insurance, the duration of the Political Risk Insurance is equal to duration determined in the underlying contract.
• Costs: Pricing depends on project and investor.

https://www.opic.gov/what-we-offer/political-risk-insurance