The following four types of documents are the minimum supporting documentation that OPIC will require to evaluate a Project. Other documentation that applicants may be required to provide (such as copies of Project contracts) will depend upon the characteristics of each individual Project.
The following entities should provide financial statements:
a) Each of the primary shareholders contributing equity or debt to the Project Company/Borrower.
b) The Project Company/Borrower itself if it is already operating.
c) Any other party whose creditworthiness is crucial to the financial success of the Project (e.g. guarantors, key contractors, key off-takers).
Corporate financial statements should include a balance sheet, income statement, and cash flow statement, preferably prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) or International Financial Reporting Standards (“IFRS”). Financial Statements must be prepared in English or accompanied by a certified English translation. Listed below are the types of financial statements that should be submitted for each type of entity:
For an existing Project Company Or For a non-U.S. public company • Annual Financial Statements (audited, if available; most recent 3 years)
• Quarterly Financial Statement (most recent quarter)
For a U.S. public company • 10K (most recent 3 years)
• 10Q (most recent quarter)
For a private company • Annual Financial Statements (audited, if available; most recent 3 years)
• Quarterly Financial Statement (most recent quarter)
• Tax Returns (most recent 3 years)
For a partnership • Annual Financial Statements (audited, if available; most recent 3 years)
• General Partner information, including (i) current signed Statement of Net Worth (assets, liabilities, net worth) and (ii) ownership
For an individual • Current Signed Personal Financial Statement (assets, liabilities, net worth)
• Tax Returns (most recent 3 years)
OPIC usually asks for up to three bank references and three trade references for companies (except for public companies) or individuals that are providing essential financial support to the Project. The parties who need to solicit references and the number of references required will be different depending upon the circumstances. For example, if the OPIC applicant is a financial institution, they are unlikely to have trade references. Applicants should consult with the OPIC officer with whom they are working to determine what is required. If the bank or company from which they are soliciting the reference does not already have a standard form for providing such statements, they may use OPIC's templates. For the Bank Reference Template please click here and for the Trade reference templates please click here.
The following checklist details the items to include in the business plan. Please provide as complete a business plan as possible.
Project Summary
• Project Description/Status: Describe the purpose for which the OPIC loan is to be used and the Project development activities completed to date -- the Project Company’s date of incorporation, investment made to date, market or feasibility studies performed, past and on-going consultations with project-affected communities (including disadvantaged and vulnerable groups), status of documentation/permits/government consents/land acquisition, etc.
• Financial Plan and Credit Support: Describe the proposed OPIC and other lender debt -- loan amount, tenor, grace period -- and source, timing and amount of equity contributions; describe proposed collateral and other credit support.
Project Ownership and Management
• Ownership of the Project Company: Provide complete Project Company ownership, including all holding companies or intermediary operating companies, and electronically attach an ownership chart, if available.
• Project Developers: List primary shareholders developing the Project and the professional expertise of such individuals, including experience in the Project Country.
• Project Management: Describe Project Company management structure and professional expertise of individuals in key management positions.
• Consultants/Advisors: List consultants or advisors to the Project Company, detailing the contact information and role of such consultants or advisors and work or reports completed to date.
Project Sector/Target Market/Economics
• Sector/Industry: Describe history, sector reform, recent market trends, competition, supply and demand, pricing, market position of Project Company (at time of market entry and long-term), etc.
• Product/Services: Describe the products or services the Project will produce, in what quantity, and whether for the local market or for export (and if for export, to which countries).
• Project Economic/Technical Specifications: Describe the Project economics, technical parameters, construction plans/schedule, equipment/land to be procured, off-take arrangements, etc.
• Agreements: List all key operating agreements necessary to undertake the Project such as concession agreement(s), construction contract(s), off-take agreement(s), environmental impact studies, feasibility studies, marketing studies, technical assistance agreement(s), management services agreement(s), lease(s), etc. (and attach electronically if possible).
Legal, Economic, and Political Environment and Government Participation
• Licenses/Permits: List all licenses, permits, consents, approvals, environmental requirements etc. required by the Project Country government and the status of such documentation.
• Legal Regime:List Project Country laws, regulations or pending reforms that will impact the Project or the sector.
• Economic/Political Climate:Describe the economic and political climate of the Project Country and the specific region in which the Project is located, as they may affect the Project.
• Government/Multilateral Participation:Describe any government or multilateral involvement in the Project or the sector and any government incentives such as tax holidays.
• Litigation or Dispute Resolution:Describe any litigation or community dispute or complaint resolution processes that have occurred or are occurring involving the Project, the Project Company, or shareholders.
Project Strengths/Risks and Risk Mitigation
• Strengths: Describe those factors that strengthen the Project economics and contribute to the long-term viability of the Project.
• Risks:describe Project risks such as credit risks, sector/market risks and competition, operational and management risks, political/economic risks, legal/regulatory risks, and environmental, social and human rights risks and what steps the Project Company will take to mitigate such risks and provide access to accountability and remedy for negative project impacts on individuals and communities.
• The financial projections model for the Project (which should be in Microsoft Excel) should include detailed assumptions as to the Project’s budget, revenue, expenses, financing terms, timing of equity contributions, loan disbursement schedule, etc.
• The model must include an income statement, balance sheet and cash flow statement projecting the financial performance of the Project over the life of the OPIC loan.
• If the Project is an expansion, please ensure that the model includes the last two fiscal years of operations as the basis for the projections.
• The model must also include the calculation of the following ratios: Cash Flow to Debt Service, Current Assets to Current Liabilities, Total Indebtedness to Tangible Net Worth, and Internal Rate of Return.
• Attached with the model should be a summary describing the primary model assumptions and basis for such assumptions. For example, sales volumes and pricing assumptions may be based upon the terms of off-take contracts or a market analysis.
If they have not already built a complete financial projections model, applicants are encouraged to utilize the standard OPIC financial projections model templates for convenience and consistency. For the financial projections model template please click here and for the associated instructions please click here.