Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

OPIC Commits $400M

Chase Manhattan and the U.S. government's Overseas Private Investment Corp., or OPIC, signed a commitment letter for a five-year agreement on a $400 million revolving credit facility in Russia.


Loans will be targeted at Russian export-oriented companies generating hard currency sales and buying goods and services from U.S. suppliers, said Sergei Boboshko, president of Chase Manhattan Bank International in Moscow.


The letter was signed Tuesday in Moscow. Individual loans likely will average $1 million to $2.5 million. Fifty percent of the loan risk will be guaranteed by OPIC, 35 percent by Chase and 15 percent by involved U.S. suppliers. Loans will be in dollars and up to a year.


OPIC provides loans and loan guarantees to American companies investing in other countries. Since 1992, OPIC has covered about $3.5 billion of investment in the former Soviet Union.


Chase's Moscow branch employs 42 workers and by 1997 expects to expand to about 60.


?The Associated Press reported that OPIC and the Export-Import Bank announced $480 million worth of new financing aid for trade with Russia.


Coca-Cola, the biggest beneficiary, will get $244 million worth of insurance against war, civil strife and any government action against its investments from OPIC.


The Export-Import Bank announced a loan guarantee of $54.5 million to Caterpillar Inc. and other U.S. firms selling American mine equipment to Almazy-Rosii-Sakha, the largest producer of diamonds in Russia.