What interest rates will be charged on the OPIC loan?
Typically an OPIC-guaranteed loan will bear Base Interest at a prevailing rate based on the rate for U.S. Treasury STRIPs with comparable terms and tenor determined separately for each disbursement. In addition, there is a premium over U.S. Treasury STRIPs which COP holders require; this premium is based on market conditions at each disbursement. Interest (including the OPIC premium) will accrete and compound semi-annually.
An OPIC-guaranteed loan will bear a Base Interest rate comprised of: (a) the prevailing rate for U.S. Treasury STRIPs with comparable terms and tenor determined separately for each disbursement; and (b) a premium over U.S. Treasury STRIPs, which COP holders require, based on market conditions at each disbursement. The Base Interest accretes and compounds semi-annually.