OPIC - Overseas Private Investment Corporation

The Overseas Private Investment Corporation (OPIC) was a U.S. government development finance institution that mobilized private capital to address critical development challenges globally. Established in 1971, OPIC provided financing, guarantees, and political risk insurance to support U.S. businesses investing in emerging markets. Its mission was to foster economic growth, promote stability, and advance U.S. foreign policy interests by encouraging private sector investment in developing countries. OPIC's portfolio spanned various sectors, including energy, infrastructure, financial services, and telecommunications, often focusing on projects that had significant development impact while also being commercially viable.

On December 20, 2019, OPIC was succeeded by the U.S. International Development Finance Corporation (DFC), a new, more robust development finance institution created under the BUILD Act of 2018. The DFC consolidated OPIC's functions with elements of USAID's Development Credit Authority, significantly expanding the U.S. government's toolkit for private sector development. The DFC's mandate is broader, allowing for a wider range of financial products, including direct equity investments, in addition to debt financing, political risk insurance, and technical assistance. This transition marked a strategic enhancement of the U.S. approach to international development finance.

The U.S. International Development Finance Corporation (DFC) now serves as the primary U.S. government entity for catalyzing private investment in developing countries. It focuses on strategic sectors such as energy, healthcare, critical infrastructure, and technology, with a particular emphasis on low- and lower-middle-income countries. The DFC has an investment cap of $60 billion, a substantial increase from OPIC's previous $29 billion, enabling it to support larger and more complex projects. While DFC's financing can range from smaller loans to significant project finance, it typically targets projects requiring substantial capital, with individual commitments often ranging from millions to hundreds of millions of dollars, and even exceeding $1 billion for very large-scale infrastructure or energy initiatives. Its operations are designed to complement private sector investment, addressing market gaps and mitigating risks to unlock capital for impactful development.