Institution details
OPEC Fund for International Development (OFID) (OFID)
Key facts
- Established in 1976
- Ownership: Public
- Parkring 8
- +43-1-515 64-0
- http://www.ofid.org/
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | Fitch | Foreign currency | AA+ |
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
What's new?
- Throughout 2018, OFID signed collaboration agreements with other DFIs, multilaterals, and financial institutions, such as the Black Sea Trade and Development Bank (BSTDB), Central American Bank for Economic Integration (CABEI), Natixis, and the World Health Organization
- OFID has 13 member countries: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela - Although they are developing nations themselves, OPEC member countries are excluded from benefiting from assistance, except in the case of disaster relief or within the context of a regional program
- While OFID does not recommend partner country governments to undertake reforms or adopt new policies designed to improve their countries' social and economic performance, it nonetheless requires proper project and program implementation as stipulated in the loan agreement