Institution details

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OPEC Fund for International Development (OFID) (OFID)

Key facts

  • Established in 1976
  • Ownership: Public

Latest update: 03/12/2021

Products

  • Public sector lending
  • Private sector lending
  • Trade finance facility
  • Grant program

Public Sector Lending

  • OFID’s public sector loans are concessional, with low interest rates and long repayment periods
  • All public sector operations are co-financed with the recipient government and frequently with other donors, including regional development banks, UN agencies and the bilateral and multilateral development agencies of OPEC member countries
  • The government of the eligible partner country makes a request through the minister in charge of mobilizing foreign assistance, and triggers OFID’s internal project preparation and review cycle

Private Sector Lending

  • Current products include loans and credit lines, equity, quasi-equity or mezzanine instruments, Islamic financing, and credit guarantees
    - Usually offers funding in USD or EUR; exceptionally, when market conditions allow for appropriate hedging, local currency funding may be structured
  • Pricing and fees:
    - A choice between floating and fixed interest rate is offered
    - Maturity, including grace period for principal repayment, takes account of the nature of the project and projected cash-flow
    - A front-end fee is generally payable following signature, and a commitment fee is payable on the undisbursed portion of the loan
    - Pricing and other terms and conditions of quasi-equity products are in line with normal industry practice

Trade Finance Facility

  • Current funded and unfunded trade finance products include loans, revolving lines of credit, structured commodity finance, risk sharing, and guarantees
  • Funding is delivered on a conventional or Islamic basis and is channelled directly or through participation in syndicated facilities, club deals, and co-financing arrangements by commercial banks, other development finance institutions, and trade finance funds
  • Available to governments, private entities, commercial banks, regional development finance institutions, and any other institution active in an OFID partner country
  • Tenors vary depending on the nature of the transaction but would mostly be less than 1 year
  • Pricing is market-based and considers the nature of the transaction, the counterparty, and the country situation
  • Conducts unfunded transactions in all major convertible currencies
  • Funded transactions are traditionally concluded in USD or EUR

Grant Program

  • OFID’s grant program includes the following sub-programs:
    - Technical assistance
    - Humanitarian aid
    - Research and similar activities
    - Special health program
    - Palestine program
    - Energy poverty program
  • Conditions: At least 60% of the project’s budget should already be secured, as OFID generally does not finance more than 40% of the total expenses


Performance highlights

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