U.S. International Development Finance Corporation (DFC)

Investing in Haiti

The U.S. International Development Finance Corporation (DFC) offers innovative financial solutions to support private investors through debt financing, political risk insurance, equity investment, and supporting private equity investment funds. The DFC prioritizes low-income and lower middle-income countries, where its services will have the greatest impact. By mobilizing private capital to help solve critical development challenges. The DFC advances U.S. foreign policy, and catalyzes revenues, jobs and growth opportunities both at home and abroad. The DFC was established by the BUILD Act as the successor to the Overseas Private Investment Corporation and USAID’s Development Credit Authority.

Products

Debt Finance

― Limited-recourse, long-term financing for private-sector, commercial projects and lending platforms
― Direct loans and guarantees up to $1 billion per project, and up to 20-year term
― Specific programs tailored to small and medium-sized enterprises (SMEs)

Political Risk Insurance

― Protection against currency inconvertibility, expropriation, and political violence, including terrorism, as well as other specialized coverage
― Policy coverage up to $1 billion per project
― Fixed premium, cancellable only by insured

Support for Investment Funds

― Limited equity investment
― Senior debt financing for private equity funds selected through competitive process
― Investment decisions made independently by selected fund managers

Does Your Project Qualify for DFC Financing or Insurance Support?

The following are mandatory:

Does your project maintain private sector control? (less than 50% government ownership)
Does your project advance development? DFC helps American businesses invest in emerging markets where private capital is needed to address critical development challenges such as access to finance, infrastructure, agriculture, healthcare, and energy.
Have you sought private sector financing? DFC does not compete with private sector lenders. If a private sector lender is willing to provide financing for a project on commercially viable terms, then DFC encourages the project sponsor to use a private sector provider.
Are the project sponsors contributing an adequate level of equity to the project? Minimum required owner equity at time of financing is between 20-25%.
Do you have a successful track record in the industry?
Does your project exclude activities that DFC is prohibited from supporting? DFC is categorically prohibited from supporting activities that may have an irremediable impact on the environment, an adverse impact on the U.S. economy or employment, or an adverse impact on public health and safety.
Will your project be managed in compliance with International Labor Organization worker rights standards?

Before calling the DFC, be prepared to answer the following questions:

Describe the transaction (including size, scope and anticipated total project cost) and key entities involved, including U.S. entities, if any.
Is the purpose of the transaction to support a specific borrower, a type or group of borrowers, or to provide more financing capacity?
What is the proposed financing product or mechanism – loan, equity, guarantee, and/or political risk insurance?
What is the anticipated source of project revenue? Will the revenue be paid pursuant to a contract of some type (power purchase agreement, offtake agreement, etc.)? If so, has the contract been executed? Who is the counterparty (and is there a counterparty guarantor)?
What is the anticipated timing of the project (if applicable, when is construction anticipated to start, when are regular commercial operations anticipated to start, etc.)?
If project finance, are there other participating parties in the transaction, will the project sponsor(s) commit equity to the deal, and is there a sovereign guarantee?
If a physical project, is this transaction greenfield (i.e., on a previously undeveloped site) or brownfield (i.e., on a previously developed site)?

Our Impact Overseas

Projects that DFC currently supports, including projects financed under OPIC, are producing significant sustainable economic development results across a number of sectors.

Agriculture projects are sustaining livelihoods for nearly 1 million small holder farmers.

Energy projects are expected to generate more than 5 gigawatts of electricity in the developing world –enough to power roughly 3 million U.S. homes.

Healthcare projects are treating patients at a rate of more than 7 million patient visits per year –in both small clinics and large hospitals.

Education projects are educating more than 120,000 students in primary and secondary schools, and more than 25,000 students in higher education.

Housing projects have constructed more than 60,000 affordable homes and have provided more than 200,000 home mortgages, the majority of which were first-time homeowners.

Water infrastructure projects are producing over 150 billion liters of water each year, the equivalent of more than 260 billion bottles.

SME and microfinance clients are providing access to finance to over 10 million SME and microfinance borrowers.

How is the DFC different from what China offers?

― The DFC will advance private-sector-led development, resulting in projects that adhere to high standards and are financially viable over the long haul. Contracts are transparent, financing is sustainable, economic and social impacts are properly assessed, and projects help the local economy in many ways.

― The DFC will help countries sidestep opaque financing that often results in unsustainable debt. It will also help more American businesses invest, and/or find local partners in emerging markets, including many places that are of key strategic importance to the United States.

Contact the DFC:

U.S. International Development Finance Corporation
1100 New York Ave NW, Washington, DC 20527
info@dfc.gov | +1 (202) 336-8400 | https://www.dfc.gov/
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