Enter to open, tab to navigate, enter to select
Overseas Private Investment Corporation (OPIC)
Practical Law Glossary Item 7-503-6887 (Approx. 2 pages)
Glossary
Overseas Private Investment Corporation (OPIC)
Established in 1971, OPIC was the US's development finance institution until it merged with the Development Credit Authority of the United States Agency for International Development to form the US International Development Finance Corporation (DFC) under the Better Utilization of Investments Leading to Development (BUILD) Act of 2018 (Pub. L. No. 115-254). Before the merger:
- Helped US businesses invest overseas by, among other things, providing financing such as taxpayer-backed loans and loan guarantees for qualifying projects and investments.
- Fostered economic development in new and emerging markets.
- Complemented the private sector in managing risks associated with foreign direct investment. OPIC is one of the private sources of political risk insurance. This insurance is available to US investors, contractors, exporters, and financial institutions and covers currency inconvertibility, expropriation, and political violence.
- Supported US foreign policy.
- Promoted US best practices by requiring projects to adhere to international standards on the environment and worker and human rights. OPIC has adopted the Equator Principles and requires the projects it funds to comply with its environmental and health and safety principles.