Georgian Health Care 2020: MEDEA 2011 OPIC Financial Solutions for Health Care

Iman Tariq KennerlyOverseas Private Investment Corporation

Agenda

OPIC Background

OPIC Solutions for Health Care Industry

Contact Information

Addendum: Illustrative Case

2An Agency of the U.S. Government

An Agency of the U.S. Government 3

Overseas Private Investment CorporationBackground

An Agency of the U.S. Government 4

As the U.S. Government’s premier development finance institution, OPIC mobilizes the participation of U. S. private capital to support sustainable economic

development in emerging markets.

Our Organization

OPIC currently manages a $14B portfolio of projects in over 150 countries and operates on a self-sustaining basis at no net cost to the American taxpayer.

Shading denotes OPIC-eligible countries

An Agency of the U.S. Government 5

Administration Development Priorities

OPIC is uniquely positioned to support the administration’s new development strategy

Foreign Policy Development

USBusiness

OPIC

OPIC’s Unique Position Administration Priorities

“We’re changing how we define development…we need to harness all the tools at our disposal—from our diplomacy to our trade and investment policies.”

~President Obama, 9/22/10

Supporting broad-based, sustainable economic growth

Proactively targeting specific countries, regions, sectors, and technologies

Mobilizing private sector investment

Elevating development as a central pillar of national security policy

An Agency of the U.S. Government 6

Our Impact

OPIC By the Numbers* OPIC In Georgia

Over the past 39 years OPIC has supported over $188 billion of investment in developing markets that is projected to support over 274,000 U.S. jobs

Since 1993, OPIC has supported 25 projects in Georgia

• 19 financed• 9 insured

over $250 million of investment

Active pipeline of loan applications

*Since 1971

Se-ries1

Total Investment Supported

$188 billion

Se-ries1

U.S. Exports Supported (Projected)

$74 billion

Se-ries1

0 400,000

U.S. Jobs Supported (Projected)

274,000

Se-ries1

0 1,000 2,000 3,000 4,000 5,000

Total Projects Supported

4,000

An Agency of the U.S. Government 7

OPIC offers innovative financial solutions to support private investors, including debt financing, insurance, and investment funds

Our Solutions

Products Current Portfolio *

Debt financing― Ranges from large structured finance to small

business loans― Loan amounts up to $250M with fixed rate

terms for up to 20 years

Insurance― Offers coverage for risk of expropriation,

political violence, and currency inconvertibility

Investment funds― Provides debt that is matched by privately

raised equity to support funds investing in emerging markets

Other financial products― Designs hybrid financial products to help

private investors mitigate risk

Total Exposure $-

$2

$4

$6

$8

$10

$12

$14

$16

$9.3

$2.3

$2.4

$14BInvestment Funds

Insurance

Debt Financing

*As of September 30, 2010

An Agency of the U.S. Government 8

OPIC Financial Solutions for the Health Care Industry

Insurance and Finance

An Agency of the U.S. Government 9

Our Policy Standards

Eligibility Criteria for Investors Policy Standards for Projects

Investors and project proposals must satisfy certain policy criteria to receive OPIC support

OPIC supported projects must:

Contribute to sustainable development goals

Be located in one of our ~150 eligible countries

Comply with international environmental standards

Support international human rights and worker rights regulations

Cause no loss of U.S. jobs or adverse impact on the U.S. economy

To be eligible for OPIC financing and insurance, applicants must:

Have a commercially viable business plan and successful track record.

Have U.S. ownership:— Loans: Borrower must have 25% U.S.

ownership— Insurance: Policy Holder must have

>50% U.S. ownership— Funds: managed by a U.S. manager or

involve U.S. equity investment

Maintain private sector control (<50% government ownership)

An Agency of the U.S. Government 10

Political Risk Insurance

Success Stories

OPIC has insured $373 million of investment in more than 40 healthcare projects in 21 countries

India: Diagnostic imaging equipment manufacturing

Russia: Medical equipment supply and training for a state-of-the-art oncology hospital

Brazil: Medical consulting services contract

Egypt: Development of a diagnostic medical laboratory

*Since 1971

Health Care Sectors

Insured investments include hospital construction, pharmaceutical manufacturing, medical consulting services and more

OPIC can also insure:

• Mobile Clinics

• Medical Training Facilities

• Medical Device and Pharmaceutical Manufacturing Operations

• Contracts with government or government-owned entities

An Agency of the U.S. Government

Insurance Coverage for Health Care Sector

Private Hospitals and Clinics Mobile Clinics

OPIC may compensate for income loss due to political violence or confiscation by the host government

OPIC can compensate investors in private hospitals and clinics where there is no government ownership against loss of debt and equity investments due to expropriation, political violence, or inconvertibility of currency

For investment projects where there is government ownership, OPIC can insure against losses due to breach of contractual obligations for:

• Service providers, for example hospital management firms and consultants that have a contract with the government, and

• Contractors and exporters who enter into supply agreements with government or state-owned entities

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Training Facilities

For medical device manufacturers and other investors who develop training facilities in emerging markets, OPIC can insure valuable buildings and equipment

Medical Equipment & Supply Agreements

OPIC can compensate suppliers if the government counterparty breaches its contractual obligations

Inconvertibility coverage ensures the conversion of local currency into U.S. dollars and transfer out of the host country of contractual payments received under a supply agreement

An Agency of the U.S. Government

Insurance Coverage for Health Care Sector

Medical Manufacturing Operations Healthcare Infrastructure Investment Funds

For U.S. equity investors in healthcare infrastructure projects abroad, OPIC insurance can protect assets and business income from losses due to political violence

OPIC can compensate investors in manufacturing operations for loss of debt and equity investments due to expropriation, political violence, or inconvertibility of currency.

Coverage is also available for business income loss resulting from damage to specific sites outside the insured facility (e.g. critical railway spur, power station, or supplier).

12

Institutional Loans to Healthcare Enterprises

OPIC’s institutional loans program insures debt service payments to U.S. lenders from eligible healthcare projects in emerging markets

An Agency of the U.S. Government 13

Finance

Success Stories

OPIC has financed over $51 million of investment in more than 6 healthcare projects in over 10 countries

Poland: Development of oncology care facility, Network of private health care clinics

Various: Diagnostic medical equipment leasing and financing operation

Brazil: Medical consulting services contract

Ethiopia: Development of a diagnostic medical laboratory

*Since 1971

Health Care Sectors

Financed investments include treatment centers and clinics, equipment leasing companies, laboratories, and more.

OPIC can also finance:

• Medical Training Facilities and Universities

• Medical Device and Pharmaceutical Manufacturing Operations

• Consulting contracts

An Agency of the U.S. Government

Financing the Health Care Sector

Equipment Leasing and Training Companies Laboratories

A $500,000 OPIC loan to MedPharm, Inc., the U.S. member of the ICL joint venture, was made to help establish a medical diagnostic testing lab, which will perform according to international standards. The lab will serve the majority of the country and introduce testing technologies not currently available in Ethiopia. In addition, ICL will promote health issues and awareness about AIDS, tuberculosis and malaria through health fairs, screening programs and other outreach efforts.

A $28 million OPIC loan to DVI, Inc., sought to bring more sophisticated medical care to people in Central and Eastern Europe and Turkey. DVI specializes in leasing and installing state-of-the-art diagnostic medical equipment — such as magnetic resonance imaging (MRI scans), computerized tomography (CT scans), ultrasound, radiation and gamma knife equipment — in hospitals, clinics and other specialized patient centers.

With private sector funding unavailable, OPIC’s loan helps DVI meet its corporate strategy of responding to growing international markets.

Doctors and technicians will receive professional training to use the equipment, which is expected to result in better preventive health care, lower medical costs and fewer procedures for patients.

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Selected Case Studies

An Agency of the U.S. Government 15

For more information, please contact:

General Inquiriesemail: info@opic.govOPIC Main Phone: 202-336-8400

Iman Kennerlyemail: ikenn@opic.govPhone: 202-336-8586

Contact Us

An Agency of the U.S. Government 16

OPIC Support for Health Care

Illustrative Case: Samara Oncology Center No. 1

OPIC provided risk mitigation products critical to financing medical equipment and training

1. Samara Oncology Center No. 1• 550 bed state-of-the-art oncology center• 1.13 billion RUR ($41 million)• 12-year local currency financing

2. Samara II• Oncology Center No. 1 and other medical institutions• 1.32 billion RUR ($47.7 million)• 12-year local currency financing

Samara Oncology Center No. 1

An Agency of the U.S. Government 17

Samara Oncology Center No. 1

18An Agency of the U.S. Government

Primary Agreements & Structure

1. Supply Agreement between ACD Research and Samara Oblast

2. Receivables Purchase Agreement between ACD Research and Deutsche Bank

ACD Research

Oncology Center

Samara Oblast

Deutsche Bank

RPA – 90% of ~12 year receivable

RUR scheduled paymentsconverted to USD

Construction, medical equipmentinstallation & training services

Supply Agreement ~12 year receivable

Expropriation & Inconvertibility Insurance

19An Agency of the U.S. Government