AIG to Administer $300M Lending Facility With Government Guarantees
February 7th, 2007 - Category: Real EstateAmerican International Group Inc., which provides insurance and financial services, will lend up to $300 million to support clean energy investments around the world, with the loans to be backed by government guarantees, a government agency said.
The Overseas Private Investment Corporation, an independent agency that provides loan guarantees and direct financing to promote U.S. investment in developing countries, said Monday that it will provide $210 million in guarantees to support a $300 million lending facility to be administered by several AIG subsidiaries.
OPIC will guarantee 70 percent of each loan, a spokesman for the agency said, while the bank absorbs the remaining risk.
The $300 million facility will be “available to support energy efficiency and performance upgrades to refineries, petrochemical plants, pipelines, and power generation plants, as well as renewable and alternative energy projects,” the agency said in a written statement.
With support from the Department of Energy and OPIC, AIG will administer the facility “consistent with the Bush administration’s goals to support clean energy investments, reduce greenhouse emissions and ensure access to affordable, reliable, clean and efficient energy services in developing areas around the world,” OPIC said.
In a separate, undated statement on climate change on its web site, AIG said its Global Investment Group would invest in projects and technologies that would reduce greenhouse gas emissions. The company also said it wanted to support the markets for tradable carbon credits.
Shares of AIG rose 20 cents to close at $69.50 Tuesday on the New York Stock Exchange.
