The Overseas Private Investment Corporation (Opic) and Citigroup have established a US$131mn lending facility designed to revitalise small and medium-sized enterprises (SMEs) in Iraq.


Arranged by Opic, Citigroup Export and Agency Finance and the Dubai-based Citigroup representative office, the facility will provide loans to Iraqi financial institutions, which in turn will lend the funds to Iraqi SMEs to finance their investment and working capital requirements.


The project will comprise a US$92.8mn facility provided by Citigroup, backed by an investment guaranty from Opic; a US$23.2mn grant from the Coalition Provisional Authority and a US$15mn syndicated bank facility arranged by Citigroup. BNP Paribas and HBK will participate in the syndicate along with Citigroup.