Transcript Slide 1
Georgian Health Care 2020: MEDEA 2011
OPIC Financial Solutions for Health Care
Iman Tariq Kennerly
Overseas Private Investment Corporation
An Agency of the U.S. Government
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Agenda
OPIC Background
OPIC Solutions for Health Care Industry
Contact Information
Addendum: Illustrative Case
An Agency of the U.S. Government
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Overseas Private Investment Corporation
Background
An Agency of the U.S. Government
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Our Organization
As the U.S. Government’s premier development finance institution, OPIC mobilizes
the participation of U. S. private capital to support sustainable economic
development in emerging markets.
Shading denotes
OPIC-eligible countries
OPIC currently manages a $14B portfolio of projects in over 150 countries and
operates on a self-sustaining basis at no net cost to the American taxpayer.
An Agency of the U.S. Government
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Administration Development Priorities
OPIC is uniquely positioned to support the administration’s new development strategy
Administration Priorities
OPIC’s Unique Position
Foreign
Policy
Development
OPIC
US
Business
“We’re changing how we define development…we
need to harness all the tools at our disposal—from
our diplomacy to our trade and investment
policies.”
~President Obama, 9/22/10
Supporting broad-based, sustainable economic
growth
Proactively targeting specific countries, regions,
sectors, and technologies
Mobilizing private sector investment
Elevating development as a central pillar of
national security policy
An Agency of the U.S. Government
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Our Impact
Over the past 39 years OPIC has supported over $188 billion of investment in developing
markets that is projected to support over 274,000 U.S. jobs
OPIC In Georgia
OPIC By the Numbers*
Total Investment
Supported
$188 billion
$0
Total Projects
Supported
U.S. Exports
Supported
(Projected)
$100
$150
$200
4,000
0
1,000 2,000 3,000 4,000 5,000
Since 1993, OPIC has supported 25 projects in
Georgia
• 19 financed
• 9 insured
over $250 million of investment
Active pipeline of loan applications
$74 billion
$0
U.S. Jobs
Supported
(Projected)
$50
$100
274,000
0
*Since 1971
$50
400,000
An Agency of the U.S. Government
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Our Solutions
OPIC offers innovative financial solutions to support private investors, including debt financing,
insurance, and investment funds
Current Portfolio *
Products
Debt financing
― Ranges from large structured finance to small
business loans
― Loan amounts up to $250M with fixed rate
terms for up to 20 years
Insurance
― Offers coverage for risk of expropriation,
political violence, and currency
inconvertibility
Investment funds
― Provides debt that is matched by privately
raised equity to support funds investing in
emerging markets
$16
$2.3
Investment
Funds
$2.4
Insurance
$14
$12
$10
$8
$6
$4
$9.3
Debt
Financing
$2
$-
Other financial products
― Designs hybrid financial products to help
private investors mitigate risk
*As of September 30, 2010
$14B
An Agency of the U.S. Government
Total Exposure
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OPIC Financial Solutions for the Health Care Industry
Insurance and Finance
An Agency of the U.S. Government
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Our Policy Standards
Investors and project proposals must satisfy certain policy criteria to receive OPIC support
Policy Standards for Projects
Eligibility Criteria for Investors
To be eligible for OPIC financing and insurance,
applicants must:
OPIC supported projects must:
Contribute to sustainable development goals
Be located in one of our ~150 eligible
countries
Comply with international environmental
standards
Support international human rights and
worker rights regulations
Cause no loss of U.S. jobs or adverse impact
on the U.S. economy
Have a commercially viable business plan and
successful track record.
Have U.S. ownership:
— Loans: Borrower must have 25% U.S.
ownership
— Insurance: Policy Holder must have
>50% U.S. ownership
— Funds: managed by a U.S. manager or
involve U.S. equity investment
Maintain private sector control (<50%
government ownership)
An Agency of the U.S. Government
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Political Risk Insurance
OPIC has insured $373 million of investment in more than 40 healthcare projects in 21
countries
Health Care Sectors
Success Stories
Insured investments include hospital
construction, pharmaceutical manufacturing,
medical consulting services and more
India: Diagnostic imaging
equipment manufacturing
OPIC can also insure:
Russia: Medical equipment
supply and training for a stateof-the-art oncology hospital
Brazil: Medical consulting
services contract
Egypt: Development of a
diagnostic medical laboratory
•
Mobile Clinics
•
Medical Training Facilities
•
Medical Device and Pharmaceutical
Manufacturing Operations
•
*Since 1971
Contracts with government or
government-owned entities
An Agency of the U.S. Government
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Insurance Coverage for Health Care Sector
Private Hospitals and Clinics
Mobile Clinics
OPIC can compensate investors in private
hospitals and clinics where there is no
government ownership against loss of debt
and equity investments due to expropriation,
political violence, or inconvertibility of currency
OPIC may compensate for income loss due to
political violence or confiscation by the host
government
For investment projects where there is
government ownership, OPIC can insure
against losses due to breach of contractual
obligations for:
• Service providers, for example hospital
management firms and consultants that
have a contract with the government,
and
• Contractors and exporters who enter into
supply agreements with government or
state-owned entities
For medical device manufacturers and other
investors who develop training facilities in
emerging markets, OPIC can insure valuable
buildings and equipment
Training Facilities
Medical Equipment & Supply Agreements
OPIC can compensate suppliers if the
government counterparty breaches its
contractual obligations
Inconvertibility coverage ensures the conversion
of local currency into U.S. dollars and transfer
out of the host country of contractual
payments received under a supply agreement
An Agency of the U.S. Government
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Insurance Coverage for Health Care Sector
Medical Manufacturing Operations
OPIC can compensate investors in manufacturing
operations for loss of debt and equity
investments due to expropriation, political
violence, or inconvertibility of currency.
Coverage is also available for business income
loss resulting from damage to specific sites
outside the insured facility (e.g. critical railway
spur, power station, or supplier).
Healthcare Infrastructure Investment Funds
For U.S. equity investors in healthcare
infrastructure projects abroad, OPIC insurance
can protect assets and business income from
losses due to political violence
Institutional Loans to Healthcare Enterprises
OPIC’s institutional loans program insures debt
service payments to U.S. lenders from eligible
healthcare projects in emerging markets
An Agency of the U.S. Government
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Finance
OPIC has financed over $51 million of investment in more than 6 healthcare projects in over 10
countries
Health Care Sectors
Success Stories
Financed investments include treatment
centers and clinics, equipment leasing
companies, laboratories, and more.
Poland: Development of
oncology care facility, Network
of private health care clinics
OPIC can also finance:
Various: Diagnostic medical
equipment leasing and
financing operation
Brazil: Medical consulting
services contract
Ethiopia: Development of a
diagnostic medical laboratory
•
Medical Training Facilities and
Universities
•
Medical Device and Pharmaceutical
Manufacturing Operations
•
Consulting contracts
*Since 1971
An Agency of the U.S. Government
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Financing the Health Care Sector
Selected Case Studies
Equipment Leasing and Training Companies
A $28 million OPIC loan to DVI, Inc., sought to
bring more sophisticated medical care to
people in Central and Eastern Europe and
Turkey. DVI specializes in leasing and installing
state-of-the-art diagnostic medical equipment
— such as magnetic resonance imaging (MRI
scans), computerized tomography (CT scans),
ultrasound, radiation and gamma knife
equipment — in hospitals, clinics and other
specialized patient centers.
Laboratories
A $500,000 OPIC loan to MedPharm, Inc., the
U.S. member of the ICL joint venture, was
made to help establish a medical diagnostic
testing lab, which will perform according to
international standards. The lab will serve the
majority of the country and introduce testing
technologies not currently available in
Ethiopia. In addition, ICL will promote health
issues and awareness about AIDS, tuberculosis
and malaria through health fairs, screening
programs and other outreach efforts.
With private sector funding unavailable, OPIC’s
loan helps DVI meet its corporate strategy of
responding to growing international markets.
Doctors and technicians will receive professional
training to use the equipment, which is
expected to result in better preventive health
care, lower medical costs and fewer
procedures for patients.
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Contact Us
For more information, please contact:
General Inquiries
email: [email protected]
OPIC Main Phone: 202-336-8400
Iman Kennerly
email: [email protected]
Phone: 202-336-8586
An Agency of the U.S. Government
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OPIC Support for Health Care
Illustrative Case: Samara Oncology Center No. 1
An Agency of the U.S. Government
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Samara Oncology Center No. 1
OPIC provided risk mitigation products critical to
financing medical equipment and training
1. Samara Oncology Center No. 1
• 550 bed state-of-the-art oncology center
• 1.13 billion RUR ($41 million)
• 12-year local currency financing
2. Samara II
• Oncology Center No. 1 and other medical institutions
• 1.32 billion RUR ($47.7 million)
• 12-year local currency financing
An Agency of the U.S. Government
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Samara Oncology Center No. 1
An Agency of the U.S. Government
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Primary Agreements & Structure
1. Supply Agreement
between ACD
Research and
Samara Oblast
Deutsche Bank
Expropriation &
Inconvertibility Insurance
RPA – 90% of ~12
year receivable
ACD Research
Supply Agreement ~12 year receivable
2. Receivables
Purchase Agreement
between ACD
Construction, medical equipment
Research and
installation & training services
Deutsche Bank
RUR scheduled payments
converted to USD
Samara Oblast
Oncology Center
An Agency of the U.S. Government
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