Press Release: IDB Invest and OPIC Partner to Catalyze Billions for Development in Latin America and the Caribbean
Tuesday, October 1, 2019
At the 60th anniversary celebration of the Inter-American Development Bank (IDB), Luis Alberto Moreno, IDB President and Chairman of the Board of IDB Invest, and David Bohigian, Acting President and CEO of the Overseas Private Investment Corporation (OPIC), signed a memorandum of understanding (MOU) pledging to invest a combined $3 billion in development projects in Latin America and the Caribbean over the next five years, with the option of increasing the investment to $5 billion. IDB Invest and OPIC aim to match this investment by catalyzing additional capital from the private sector, for a total ranging between $6 billion and $10 billion.
“To achieve shared development goals in Latin America and the Caribbean, IDB Invest seeks solid partners like OPIC to jointly attract private investors, multiply our impact, and ultimately make our mark on the region’s development,” remarked James P. Scriven, CEO, IDB Invest.
“Meeting the vast development needs of Latin America and the Caribbean will require innovative thinking and strategies,” said Bohigian. “By leveraging our toolkit and the regional expertise of IDB Invest, we can scale our impact and promote a private sector-led model that promises greater prosperity and stability throughout this critical region.”
The MOU is a key element of joint efforts by these organizations to catalyze resources for the Latin America and Caribbean region. To achieve this goal, OPIC and IDB Invest will seek to leverage their collective resources to conduct business development, due diligence, and ongoing monitoring of jointly supported projects.
Within this collaboration, IDB Invest and OPIC will focus on projects denominated in U.S. dollars or local currency in the infrastructure sector, namely in the areas of transport, energy, water and sanitation, and social infrastructure, which includes health and education. They will also prioritize investment in businesses and funds owned by, led by, or providing a product or service that intentionally empowers women. This gender focus builds upon the Fund Mujer initiative launched by OPIC and IDB Invest in 2018.
Both institutions will explore providing clients a variety of solutions beyond senior debt, including mezzanine financing and equity. Their collaboration will advance a robust alternative to state-led investments that undermine the long-term prosperity, stability, and security of countries in Latin America and the Caribbean.
Photo courtesy of Kevin Keith.