Georgian Prime Minister Gurgenidze and Deputy Secretary of Commerce Sullivan join Mosbacher at agreement signing in Tbilisi; Seven new OPIC projects unveiled
TBILISI, GA – October 27, 2008 – (RealEstateRama) — Robert Mosbacher, Jr., President and CEO of the Overseas Private Investment Corporation (OPIC), announced today that OPIC is working toward approval of $176 million in financing for seven new projects in Georgia, which would inject much-needed capital into the fledgling democracy’s banking, construction and manufacturing sectors.
Mosbacher signed agreements for several of the projects at a ceremony in the Georgian capital attended by Georgian Prime Minister Lado Gurgenidze and Deputy U.S. Secretary of Commerce John J. Sullivan, who is leading a delegation of senior U.S. officials to the country this week.
“We are in Georgia today to demonstrate the United States’ ongoing support for Georgia’s economic development, recognizing the sacrifices the nation has made to open its markets and enable its citizens to participate in the global economy,” Mosbacher said.
“In these new projects, OPIC has carefully identified sectors – finance, construction, tourism and manufacturing – that can best catalyze Georgia’s economic growth. By creating jobs and stimulating secondary economic activity, these projects will support the growth of Georgia’s financial and economic infrastructure, so that increasing numbers of Georgian citizens can enjoy the benefits of a free market economy,” Mosbacher said.
Below are summaries of the new projects which OPIC intends to support:
OPIC will provide up to $40 million in financing to TBC Bank to help support the bank and help it expand its residential mortgage lending in Georgia. These loans will be used primarily for low and middle income mortgages.
Bank of Georgia Pending approval by OPIC’s Board of Directors in December, OPIC hopes to provide up to $40 million in financing to JSC Bank of Georgia to enable the bank to expand its residential mortgage lending in Georgia, in cooperation with WorldBusiness Capital, a U.S. small business lender.
Park Hyatt Tbilisi
OPIC is considering up to $30 million in financing for the construction of a hotel and residential apartment project to be managed by Hyatt International as a Park Hyatt.
GMT Real Estate
Pending approval by OPIC’s Board of Directors in December, OPIC hopes to provide up to $40 million in financing for the construction of a multi-use building in downtown Tbilisi opposite the Georgian Parliament building. The new building will comprise office space, apartments, retail stores, and executive hotel suites, parking and a public art space.
OPIC is considering up to $10 million in financing for the renovation of an historic three-story building in Mtatsminda Park in Tbilisi. The multifunctional business complex will include space for meetings, incentives, conferences and events, a restaurant, a banquet venue, and entertainment and retail operations.
Sante GMT Products
OPIC is considering up to $10 million in financing for the expansion of a dairy and juice manufacturing facility in Georgia for the production of cheese, butter, and other products and the construction and equipping of milk collection centers.
OPIC has committed to provide a $6.3 million direct loan to Joint Stock Company SB Iberia for the construction of an apartment building for moderate-income families in Tbilisi. The project is a joint venture between JSC Iberia Real Estate and JSC Bank of Georgia. Firebird Avrora Advisors, LLC is the U.S. sponsor of the project.
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.
OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $177 billion worth of investments that have helped developing countries to generate over $13 billion in host-government revenues and create over 800,000 host-country jobs. OPIC projects have also generated $71 billion in U.S. exports and supported more than 271,000 American jobs.