MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) Approves $10m Loan to MicroEnergy Credits (MEC) to Promote Clean Energy Microfinance

The Overseas Private Investment Corporation (OPIC), an agency of the US government, has approved a loan of USD 10 million to MicroEnergy Credits (MEC), a US-based, for-profit firm, to assist microfinance institutions (MFIs) in launching clean-energy lending programs. Program loans will reduce the upfront cost for people with low incomes to purchase products such as high-efficiency stoves, water purification devices and solar lighting. OPIC President and CEO Elizabeth Littlefield states, “making clean energy technology available to individual micro borrowers and micro entrepreneurs on a widespread basis is an important – and often overlooked – part of the international effort to reverse climate change.” OPIC provides direct loans, guarantees, political risk insurance and investment funds to help US-based firms invest in developing countries. As of September 30, 2010, OPIC reports total assets of USD 7 billion deployed in approximately 150 countries. MEC reaches 80,000 households with clean energy services in partnership with 20 microfinance institutions. One of MEC’s partners is the US-based nonprofit Finca International, which has microfinance subsidiaries on five continents.

About OPIC:
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans, guarantees, political risk insurance and investment funds. As of September 30, 2010, OPIC reports total assets of USD 7 billion deployed in approximately 150 countries.

About MicroEnergy Credits:
MicroEnergy Credits (MEC) is a financial intermediary that helps microfinance institutions (MFIs) access carbon markets so MFIs can raise funds to offset the cost of clean energy. Founded in 2007 and based in Seattle, Washington, MEC works with microfinance institutions and carbon emission reducers around the world. A for-profit social enterprise, MEC reaches 80,000 households with clean energy services in partnership with 20 microfinance institutions. One of MEC’s partners is the US-based nonprofit Finca International, which has microfinance subsidiaries on five continents.

By Ariana Malushi, Research Associate

Resources and Additional Resources

Microenergy Credit “OPIC Approves $10 Million to Scale Clean Energy Microfinance by MicroEnergy Credits”
http://microenergycredits.com/2011/12/03/opic-approves-10-million-to-scale-clean-energy-microfinance-by-microenergy-credits/

MicroCapital.org Story, November 23, 2011, “MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) Launches Global Engagement Call” Offering to Invest in Funds Operating in Emerging Markets”
https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-launches-“global-engagement-call”-offering-to-invest-in-funds-operating-in-emerging-markets/

MicroCapital.org Story, July 15, 2011, “MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) to Guarantee $500m in Loans to Microfinance Institutions (MFIs) for Lending to Small and Medium-Sized Enterprises (SMEs) in Egypt, Jordan; USAID to Fund Technical Assistance”
https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-to-guarantee-500m-in-loans-to-microfinance-institutions-mfis-for-lending-to-small-and-medium-sized-enterprises-smes-in-egypt-jo/

MicroCapital’s Universe Profile: OPIC
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/