Authorizations and exposure

• 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

• 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

• 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 channeled 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

• 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
• Eligibility: OFID provides grants to international, national, regional, and non-governmental organizations whose financial and legal status meets OFID’s requirements
• Individuals, private entities, and OFID member states are not eligible to apply for grant assistance
• 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

• 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

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