Eligibility

OFID, in accordance with its mandate, does not operate in OPEC Member Countries. In selecting clients, the guiding principle is the end-use of proceeds from the Facility and the economic benefit from the private sector development. An eligible client – or in the case of a financial intermediary – an eligible end-beneficiary should normally be located in a country where OFID has executed a framework agreement and will generally satisfy the following requirements:

These should be:

  • majority privately owned, commercially feasible enterprises operating under sustainable legal and environmental conditions
  • sponsored by reliable promoters with appropriate skills and experience in the business field concerned.

 

These include:

  • commercial banks, leasing companies, housing finance companies and investment banks
  • private equity funds, generally focusing on equity investments in SMEs
  • national and/or regional development banks
  • microfinance institutions

The Facility offers appropriate flexibility in the use of proceeds through its various instruments and products. These include financing for:

  • acquisition of fixed and moveable assets
  • other capitalized costs such as pre-operating expenditures, initial working capital, interest and financial charges during construction, and technological, intellectual and marketing rights
  • financial restructuring and the replacement of temporary financing facilities (under certain circumstances)
  • on-lending to SMEs and for microfinance lending (through lines of credit)
  • capital markets development
  • infrastructure
  • social sector

Commercially managed and financially and operationally autonomous enterprises that either:

  • act as a channel for financial support to local private enterprises; or
  • are earmarked for privatization; and/or
  • are joint-ventures between a government and a foreign investor.

 

An eligible project is an expansion, rehabilitation, diversification or greenfield (new) project that is commercially, technically, ethically, legally and environmentally sound and that is deemed to contribute meaningful economic and social benefits to the host country.

 

 

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