Lots of financing options, yet modest results

How to successfully develop and finance more quality projects in emerging markets?  (Part 1)

Problem:

Last week, at a financing round-table organized by the US-Ukraine Business Council (USUBC) – representatives from the IFC, EBRD, OPIC and US EXIM bank reaffirmed their commitment to financing projects and trade with Ukraine.  They also demonstrated a whole host of very effective financing and insurance tools, available for use in Ukraine and other emerging markets.

At the same event, these esteemed organizations mentioned multiple success stories and yet each only named half a dozen, or so, of the largest Ukrainian companies (a few were the same names repeated by several institutions).  They also addressed fairly effective wholesale funding arrangements with local banks to serve local small and midsize businesses (SMEs).

Yet, each of representatives has acknowledged a serious problem, which acutely manifests itself in Ukraine and in other emerging markets: lack of strong bankable projects in the $10-75 mil. range, a segment widely considered the main economic driver and job generator in emerging market countries such as Ukraine.

Also noted were lack well-developed and bankable public sector projects in segments such as healthcare.

Thus given widespread availability of interested project sponsors, along with multiple public financing tools and risk mitigation products, what can be done to bridge the gap and convert more deal concepts into real deals with realistic financing and true economic impact?

Solution:

It is all about proper packaging.   Although the institutions are willing and able to lend,  they each have very specific goals and requirements.  Yet, the project sponsors/borrowers, oftentimes are not able to conform to those requirements, despite the fact that their financials and business plans are often sound.   (To Be Continued)

Grey2White Initiative – the journey continues (parts I and II)

™

(Part I of the article reprinted from the June 2017 issue)

Hypothesis:

Given Ukraine’s current economic and geopolitical situation, one of the most beneficial  steps the US government, business and NGO community can take, is to encourage significant external and internal direct investment into the country’s economy.

Although the US Government has had some success in attracting and supporting American direct investment into Ukraine, those investment amounts are far from sufficient. US investors new to the Ukrainian market are wary of the country’s reputation for corruption, difficulty in doing business, threats from Russia and lack of financing options.

A second and much more viable economic development option, would be to support and enable direct investment by the successful Ukrainian business people who have amassed sufficient capital and are much more comfortable and adept in investing in their home market.

One problem with pursuing that option are high Western standards, which often preclude US government development agencies and public US investors from working with this potential class of investors.  This is due to the fact that for the last twenty-five years, practically all business people in Ukraine had to operate under a certain set of conditions widely considered “grey” and in many cases “black” in the West.

Some of these “grey” conditions are lack of financial transparency, inadequate corporate governance, use of yellow press, use of cash, as well as offshore accounts to conduct operations, bribery and use of adverse political influence.

In their attempts to succeed, some folks in Ukraine went beyond previously acceptable business norms and crossed the proverbial line even further by engaging in criminal “black” behavior – graft, extortion, corruption, tender rigging and illicit drug trade.

To date, these grey conditions have presented significant challenges for the IFIs, development agencies and regulated financial US investors. Yet, it is vital to recognize the necessity to find an acceptable solution that allows Ukraine’s economy to reap significant benefits from the anticipated increase in direct investment and low-cost, long-term financing.

It is also very important to understand that the proposed Grey2White (G2W)™ initiative aims to broaden and scale up very important development and capacity building work already undertaken over the last quarter century by IFIs, such as IFC and EBRD, USAID; development agencies such as OPIC and USTDA and financial investment communities. Those initial efforts, although quite effective, focused on a relatively small sample of Ukrainian companies and were undertaken during a different stage of the country’s development.

Initiative

The G2W™ initiative will only work with those companies and individuals, who will be able to create meaningful economic impact in Ukraine, after undergoing the conversion process.  G2W™ will not in any way target those convicted of the “black” behavior, as their reputation gap is un-bridgeable within the scope of the project.

Thus the question becomes, is it possible for US stakeholders to create an environment and a broad platform from which so-called “grey” Ukrainian businessmen seeking to utilize US financing, equipment, services and franchises, as part of their major investment programs, become “bankable” under Western standards? If the answer is “Yes.”This type of conversion will provide hundreds of millions, if not billions of dollars in direct economic benefit and enhanced geopolitical security to Ukraine and to the US.

If the answer is “No,” these businessmen will either be forced to forgo the planned capital investments, or seek alliances with other grey, or black global actors in countries like Russia, China, Brazil, Iran, etc.

It is the fundamental belief by the creators of the proposed initiative that given a concerted effort by the US and Ukrainian stakeholders to develop and implement realistic procedures to increase corporate transparency, introduce financial standards, address any existing reputation issues head-on and provide reputable outside management and board oversight, it is possible within short to medium time-frames to bring these so called “grey” businessmen and their respective projects up to elevated western standards, mitigate investment and reputation risks and affect substantial economic growth in Ukraine.

Thus we hereby propose the following:

Select three-four financially viable projects sponsored  the “grey” Ukrainian actors and use them as a pilot to develop, refine and implement an effective conversion strategy to bring that project up to acceptable Western standards.

From the government side, we propose to involve the US Commercial Service, USTR, US Embassy, Ukrainian Embassy, Cabinet of Ministers of UA, members of the US Congress focused on UA issues, OPIC, regional Governors and local administrations in Ukraine, IFC, USTDA and the US EXIM Bank (when that Agency resumes its activities in Ukraine).

Among the NGO stakeholders we would like to see US-Ukraine Business Council (USBC), AMCHAM, Transparency International, Freedom House, Atlantic Council and US Ukraine Foundation. Additionally, reputable international law firms, audit firms, press, appropriate private individuals, corporate off-takers, financial market regulators, as well as relevant providers of US goods and services should be involved.

The framework of the proposed initiative shall be as follows:

• Initial Sponsor/Project assessment and preliminary due diligence
• Project selection and stakeholder awareness and involvement
• Project G2W™ Team building (attys., directors, advisers, auditors, suppliers, investors etc.)
• Full due diligence and implementation plan for the Western financial, FCPA and governance standards
• Investor cultivation and underwriting of the financing package
• Project development and implementation
• Monitoring and compliance

To kick off the proposed initiative, we propose an intensive education and awareness-building campaign designed to simultaneously involve all the stakeholders.

After the initial buy-in into the initiative is secured, work will begin on developing the pilot projects.

During the pilot project phase, the G2W pilot project team will be seeking to achieve specific and tangible goals:

• Fully assess the existing reputation risks, possible political influence issues, suitability for OPIC/IFC financing and Political Risk Insurance for the US project participants
• Prepare a legal due diligence report by a world-class law firm
• Recruit highly reputable and competent outside board members to the Project’s Board
• Design a comprehensive PR/IR strategy to inform stakeholders of the project and its ongoing developments
• Design and implement transparent financial audit, reporting and management accountability standards
• Develop ways to tangibly measure economic effect of the pilot project
• Continue to promote the initiative and seek to move it from the pilot project phase to full-blown implementation.

(to be continued)

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Part II  (April 2, 2018)

In the nine months since the above article was first published, a number of events took place, which not only validated the concept behind the Grey2White™ initiation, but also expanded its scope and attracted top notch global professionals to the program.

Although initial premise of the program to convert grey actors in Ukraine to white bankable actors, whose economic contribution will greatly outweigh any possible transgressions they may have committed up to this point remains intact, the program has been expanded to include other emerging market countries of Eastern Europe and Central Asia. The program also grew to allow so-called grey companies to unlock their value through financial and legal transformation in order and become more bankable in the Western capital and financial markets. Part of this transformation involves tools, which on one hand provide increased political protection to the current management and to foreign investors, and on the other hand allow western companies to lock up predictable valuations and to observe the transformation process first hand.

A first rate international “scrub team” has been assembled as a multidisciplinary team consisting of former US Government prosecutors, forensic accountants, legal and financial experts and last but not least, former high-level grey operator with deep expertise in shadowy government and business dealings in Ukraine and several other  post-Soviet countries.

A pilot company and its owner have been selected, as the first of four pilots companies to undergo Grey2White™ transformation in order to make them bankable by US Development Agencies for a $150 million project slated to create over 200 new jobs and to generate significant economic impact in Southern Ukraine.

In the next 60 days. key members of the G2W™ Team are expected to travel to Latvia, Kazakhstan, Azerbaijan, Uzbekistan and Ukraine to conduct additional screening and selection of the pilot companies and individuals.

In the subsequent parts of this article, we will examine the different case studies and watch the pilot candidates undergo the first steps of the Grey2White™ transformation.

(to be continued…)

 

Moody’s assigns Aa2 rating to Energoatom transaction supported by OPIC political risk insurance

We at Broad Street Capital Group are excited and proud to be part of this historic financing. Moody’s unprecedented credit rating underscores the hugely positive effect of US Government’s credit enhancement to offer long-term, low-rate financing in emerging markets, such as Ukraine, for large infrastructure projects containing US exports.

 

Moody’s assigns Aa2 rating to Energoatom transaction supported by OPIC political risk insurance

Global Credit Research – 18 Jan 2018

London, 18 January 2018 — Moody’s Investors Service, (Moody’s) has today assigned a definitive Aa2 rating on the approximately U.S. $250,000,000 of senior secured Notes (the Notes) to be issued by Central Storage Safety Project Trust (the Issuer). The outlook on the rating is stable.

The Issuer will use the proceeds of the Notes for the purpose of funding a senior term loan facility of up to $250,000,000 (the Loan) to State Enterprise National Nuclear Energy Generating Company “Energoatom” (Energoatom or the Borrower), pursuant to a credit agreement between the Issuer and the Borrower (the Credit Agreement), and to fund related reserves. Energoatom will use the proceeds of the Loan to finance a portion of the costs of constructing the first stage of a long-term central spent nuclear fuel storage facility on dedicated land in the Chornobyl exclusionary zone, which will be completed, in part, pursuant to a supply contract with Holtec International. Under the Credit Agreement, the Borrower has an unconditional obligation to pay debt service. The Government of Ukraine (the Guarantor) has issued an irrevocable and unconditional guarantee (the Guarantee) of the Borrower’s payment obligations under the Credit Agreement.

Moody’s rating of the Notes is based solely upon its view of the credit benefit of a political risk insurance policy provided for the benefit of the Issuer by the Overseas Private Investment Corporation (OPIC), an agency of the government of the United States (Government of United States of America, Aaa stable). The insurance policy covers expropriation (limited to nonpayment of an arbitral award and denial of justice) (the OPIC Policy) in relation to the Credit Agreement and the Guarantee. The OPIC Policy insures the Issuer against nonpayment of an arbitral award by the Borrower and the Guarantor or denial of justice on the part of the Guarantor.

Commenting on the rating action, Christopher Bredholt, a Moody’s Vice President and Senior Analyst, said “The Energoatom transaction is one of a number we have seen incorporating credit enhancement from development finance institutions and multilateral development banks, as they seek to crowd-in risk averse private sector capital to support infrastructure investments in more challenging sovereign environments in emerging markets”. Mr. Bredholt continued “The underlying transaction structure, with New York law obligations and submission to arbitration, in the context of the Issuer’s available reserves, supports our view of the credit benefit of the OPIC policy”.

Energoatom is a state enterprise organized under the laws of Ukraine (Government of Ukraine, Caa2 positive), and is the largest electricity producer in the country, with nearly 15 gigawatts of nuclear capacity, contributing approximately 50% of Ukraine’s electricity.

Central Storage Safety Project Trust is a State of Delaware statutory trust formed under the Delaware Statutory Trust Act, and operates pursuant to a Trust Agreement. So long as any of the Notes remain outstanding, the Issuer will have no power to engage in any business activity, or to create, assume or incur indebtedness or other liabilities, other than in the performance of its duties and obligations as contemplated in the Trust Agreement. The Issuer is a bankruptcy-remote, limited-purpose financing trust and its activities will generally be limited to making the Loan, acquiring and owning the OPIC Policy, issuing the Notes and making payments thereon, and related activities.

RATINGS RATIONALE

The Aa2 rating on the Notes reflects as strengths: (1) the political risk insurance policy provided by OPIC; (2) the Issuer has access to liquidity adequate to cover approximately 2 years of debt service in the event of instigating a consolidated arbitration process following payment default by Energoatom and the Government of Ukraine, as well as reserves to cover legal and administrative expenses, which Moody’s considers appropriate given the deal structure and insurance claims process; (3) the project is a stated policy priority for the U.S. and Ukrainian governments, as the facility will be developed to store spent fuel from three of Ukraine’s four nuclear power plants, offering an efficient and secure process that will reduce Ukraine’s dependence on Russia; (4) the key transaction documentation is governed by New York law, the obligations of Energoatom are unconditional, corporate obligations (Issuer is not directly exposed to project-related risks), and the Government of Ukraine waives sovereign immunity in respect of the Guarantee; (5) the OPIC Policy requires a valid arbitral award against the Guarantor, but does not require the enforcement of the arbitral award in either a US or a Ukrainian court, and in Moody’s view this limits potential sources of delay to a timely recovery under the OPIC Policy; and (6) the transaction parties have contractually agreed to a resolution of disputes by a single, consolidated arbitration process to be conducted under expedited arbitration procedures of Article 30 of the International Chamber of Commerce Rules, located in New York.

The rating does, however, reflect the following challenges: (1) the OPIC policy does not provide a guarantee of payment under the Notes, and is not intended to directly or indirectly transmit an unconditional OPIC guarantee of Energoatom’s payment obligations under the Credit Agreement; (2) if the Issuer is unable to obtain a final arbitral award prior to the full depletion of its available liquidity, the Noteholders would not receive scheduled debt service; (3) there is only a limited, relatively untested track record of the International Chamber of Commerce (ICC) expedited arbitration procedures which have only applied to arbitration agreements executed since March 2017; (4) it may be difficult to prove that any efforts by Ukraine to frustrate obtainment of an arbitral award will satisfy the conditions for a valid Denial of Justice claim under the OPIC Policy.

RATING OUTLOOK

The outlook on the rating is stable.

WHAT COULD CHANGE THE RATING — UP/DOWN

Moody’s does not currently consider there is scope for an upgrade.

Moody’s could downgrade the rating on the Notes if: (1) the United States government bond rating were downgraded; (2) in Moody’s view, there is a material, detrimental change in the standing of OPIC as a U.S. government agency, or to the full faith and credit of the United States which has been pledged to secure the full payment by OPIC of its obligations under the insurance policy; or (3) Moody’s considers there is a non-negligible risk of the arbitration process either (1) taking longer than anticipated and materially eroding the Issuer’s available liquidity or (2) returning an unfavourable outcome.

The principal methodology used in this rating was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017. Please see the Rating Methodologies page on http://www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on http://www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see http://www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on http://www.moodys.com for additional regulatory disclosures for each credit rating.

OPIC STATEMENT AT UKRAINE SIGNING CEREMONY FOR ENERGOATOM SPENT NUCLEAR FUEL PROJECT

Happy Holidays and all the Best in the New Year!

We at Broad Street Capital Group are proud to have been an integral part of this amazing cutting-edge project financing. As a Financial Developer, Broad Street Capital has provided project facilitation, selection of the Placement Agent, as well as insurance application development and financial support for the project. This unique transaction provides for a 20-year! low-interest loan to Energotom to help construct a centralized spent nuclear fuel storage facility in the exclusionary zone in Chernobyl Ukraine.  The loan is funded by a US capital markets bond offering, which is insured by OPIC, rated by a major agency and guaranteed by the Government of Ukraine. Press release below describes the transaction in greater detail. For more information on this project, please write

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December 21, 2017

UKRAINE – Today, the government of Ukraine hosted a signing ceremony in Kyiv for the Energoatom Central Spent Nuclear Fuel Storage Facility Project, which helps move Ukraine closer to energy independence by giving Ukraine the capability to domestically store spent nuclear fuel. OPIC is providing $250 million in political risk insurance and Holtec International, based in Camden, New Jersey, is providing the spent fuel storage casts and other equipment.

The documents included the credit agreement, the sovereign guarantee, the arbitration agreement, and the foreign enterprise support agreement. Representatives from Energoatom, Bank of America/Merrill Lynch, Broad Street Capital Group, and an OPIC trustee were in attendance.

Deputy Prime Minister Volodymyr Kistion and Minister of Finance Oleksandr Danyliuk delivered remarks. The U.S. Embassy’s Deputy Chief of Mission George Kent read the following statement from OPIC President and CEO Ray W. Washburne, who was unable to attend:

Thank you all for the invitation to attend today’s signing ceremony in support of the Energoatom Central Spent Nuclear Storage Faculty. I regret that I was unable to attend this important milestone. Many of you have worked very hard to get us here today and I thank you for your commitment.

I am very proud that OPIC has been able to support such an important project here in Ukraine. When I became the head of OPIC just a few months ago, the first international trip I took was to Ukraine. I was very impressed with what I saw here. Despite some challenges facing Ukraine, we see the potential for high-impact development projects here – particularly in the energy sector.

It is a pleasure for the United States to help move Ukraine towards energy independence by providing the capability to store spent nuclear fuel in-country, thus eliminating the need to ship the spent fuel to Russia for storage.

With total project costs of $410 million, Energoatom cannot self-finance the entire project. Therefore, OPIC has committed up to $250 million in political risk insurance to support the development, construction, and commissioning of the Energoatom Central Spent Nuclear Fuel Storage Facility in Ukraine.

This storage facility will be developed to store spent fuel from three of Ukraine’s four nuclear power plants, offering an efficient and secure process. The United States-based company, Holtec International – located in Camden, New Jersey – will supply dry storage casks, transportation casks, ancillary equipment, and engineering and training to the facility over an expected five-year period.

I’d like to thank our partners at Bank of America/Merrill Lynch without whom this deal would not be possible. They will arrange for the sale of OPIC’s $250 million commitment in the U.S. capital markets in the form of fixed-rate bond securities. The proceeds will fund the 20-year loan to Energoatom. We are very pleased that Ukraine will support the OPIC-insured loan financing by issuing a sovereign guarantee for repayment of the loan.

This is the first OPIC deal structured in this fashion and we are pleased to partner on an innovatively financed project. By working together, we will help Ukraine meet its energy needs, while supporting the U.S. economy with the creation of manufacturing jobs.

Thank you.

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The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.

OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.

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Nuclear waste with an OPIC wrap

  TXF PREMIUM

An Opic-wrapped Energoatom nuclear waste storage facility project bond is nearing launch. The enhanced bond will be structured around Ukrainian risk, nuclear risk, and the vagaries of the arbitration process.

Tom Nelthorpe

 22 September 2017

 

A $250 million enhanced bond financing for Ukrainian nuclear operator Energoatom is likely to come to market in November this year. The bonds, for which Bank of America is placement agent, would carry breach of contract insurance from the United States’ Overseas Private Investment Corporation (Opic), and fund construction of the Energoatom Central Spent Nuclear Fuel Storage Facility near Chernobyl.

Opic is wrapping the debt in large part because a US manufacturer, Holtec International, is supplying the facility with 94 double-walled stainless steel casks and related equipment. Broad Street Capital, a New York-based advisory firm, is financial adviser and what it describes as “financial developer” for the project.

READ MORE

 

Fluent In OPIC™- Getting financing and political risk insurance for your projects abroad

Please join us for a “Fluent In OPIC™ – Getting financing and political risk insurance for your projects abroad” webinar series. This webinar will only be presented three more times this year. Please register for the date and time that work best for you. Register now! https://attendee.gotowebinar.com/rt/7554456675803863297 Sponsored by the Broad Street Capital Group, this proprietary complimentary webinar ($379 Value) will offer comprehensive “beyond the website” look on how to effectively utilize little-known programs offered by the Overseas Private Investment Corporation (OPIC) – a US Government Agency – to finance international investment and franchise transactions for US companies expanding abroad. The workshop will address the types of transactions and industries being financed. It will go over the application process, deal structures, sponsor requirements and commitments, approval procedure, realistic time frame estimates, costs, fees, legal and developmental issues. The workshop will also examine various options for protecting investment through effective use of political risk insurance. PRESENTER:  ALEXANDER GORDIN, Managing Director of the Broad Street Capital Group and Creator of the FLUENT IN FOREIGN BUSINESS franchise. An international merchant banking professional with over 25 years experience providing cross-border strategic advisory services in the areas of export finance, international project finance, risk mitigation and business development. Clients include foreign governments and state enterprises. Transactional and negotiations experience in over thirty-five countries. Author of the critically acclaimed “Fluent in Foreign Business” book. Published and featured in numerous publications including: The Wall Street Journal, … for more ….http://wp.me/P1iIhX-I REGISTER NOW! https://attendee.gotowebinar.com/rt/7554456675803863297 After registering, you will receive a confirmation email containing information about joining the webinar. View System Requirements

IS YOUR BUSINESS FLUENT IN FOREIGN? – Release of my new book

…”Essential reading for any U.S business looking to expand into foreign markets.
Informative and entertaining – personal insight and experiences make this a must-read if (and you should be) expanding into new territories…”Industry Today Magazine. 

 

Today is a very special day for me.  After 23 months in the making, my book Fluent in Foreign Business  has finally been released.  In today’s post I would like to talk about the factors that led me to write this book and the benefits that I hope will accrue to its readers.  I’ll also discuss the role played by the Princeton Council on World Affairs in producing this book and the entire business educational program that is aimed at those wishing to grow or start a business abroad or simply learn more about international business.

What is the book about?  Fluent In Foreign Business is a candid account of my personal stories gathered during more than two plus decades of doing business overseas, with proven business concepts, risk management techniques and practical guidance.  It covers a number of questions that will benefit any reader wishing to consider developing or growing their international business. The book will help readers avoid costly mistakes and save them valuable time and money.  Furthermore, it puts the reader on the path of self-discovery and introspection  and will help them understand how committed they really are in their quest.  Students and those simply exploring the path of international business will find a number of stories that illustrate the dangers and the hardships, along with personal and professional rewards. Those already exporting to one country will learn how to evaluate and grow their operations into different markets.

Some of the questions answered in this book are:

•Why do I want to take my business abroad?

• Am I ready?

• Who will help?

• How do I pay for it all?

• They WILL be asking me to pay bribes; what should I do?

• What pitfalls await me?

•What happens when the proverbial s!&* hits the fan?

In writing this book, there were three things I wanted to avoid – a technical textbook product, reader intimidation and boredom.  Instead, I have tried to paint intensely practical and candid pictures of what it takes to do business abroad, what tools are needed, what support mechanisms are available, what dangers lurk and finally, what rewards await those who decide to go on the adventure.

To help reduce the intimidation factor, I introduced an avatar named Global Felix™. Every chapter includes a situational illustration of Felix, making it friendlier and more accessible to the reader. Those of you who regularly read this weekly blog, or publications such as “Industry Today,” “Industry Week,” “Business Finance,” “The NY Enterprise Report” and the Wharton Magazine blog have had a chance to read excerpted chapters from the book over the past six months.

Why did I decide to write this book? I truly believe that in today’s world, international business must be a component of every business (sans little mom and pop local enterprises). Regardless of whether it is export, direct investment or import, having an international strategy is key to long-term survival.

I also believe that to succeed in doing business abroad, a special state of mind is required along with proper coaching, deep cultural understanding, a superb information network and a sober risk/reward assessment framework. This state of mind can be achieved through education, information and empowerment of business owners, managers and entrepreneurs. Thus, along with my like-minded colleagues, we have undertaken a quest to enable as many people as possible to succeed in international business.

I also wrote this book to share my personal experiences and those of some of my colleagues. I believe these experiences serve as valid illustrations of what one can expect when doing business abroad. I have been fortunate to do business in more than 30-countries and I’ve encountered a wide variety of cultural and business situations, which I hope will benefit the reader.

Despite the fact that the U.S. has consistently been one of the largest global exporters, a vast majority of American businesses remain focused only on domestic business. Such a myopic vision makes them susceptible to economic downturns like the one we are now experiencing, and it precludes them from taking part in the breathtaking growth of some of the world’s emerging markets.  It also insulates them and undermines our country’s long-term competitive position.

Enter the Princeton Council on World Affairs ( www.princetoncouncil.org ), a non-profit organization whose mission is to Educate, Inform and Empower its members, helping them succeed in their international business and economic development efforts. It is a young organization, which is part of the 90-year old foreign affairs monolith – World Affairs Councils of America.  Led by a diverse and experienced group of Trustees and a very competent international Advisory Board, the Princeton Council has been an effective tool for its U.S. members who wish to enter various foreign markets and participate in complex multidisciplinary business opportunities. Over the last six months, the Princeton Council’s leadership has witnessed a very strong increase in cross-member activities where members and prospective members seek assistance within the Council’s membership roster to take advantage of opportunities in markets such as China, Africa, South America, Bangladesh, Jamaica and countries of Central Asia. Many foreign companies seeking to enter the U.S. markets have turned to the Princeton Council for guidance. Providing its members unparalleled access to government officials, corporate and civic leaders in multiple markets, along with numerous other education, business development advisory and cost-saving benefits, the Princeton Council has rapidly emerged as one of the most effective platforms for international business expansion, economic development and education.

Fluent In Foreign Business is the first book to be published by the Princeton Council on World Affairs. It is part of the Fluent In Foreign Academy™  – a collection of webinars and seminars dealing with topics on foreign expansion (“Fluent In Foreign™” workshops levels I-III), financing (“Fluent In OPIC™” and “Fluent In EXIM™”), “Foreign Corrupt Practices Act “(called, what else – “Fluent In FCPA™”) and project development (“Fluent In USTDA™”).  The Council is an open non-partisan foreign affairs organization that has four types of memberships available –  Student (free with .edu email), Individual, Professional and Corporate. (for more info or to join visit http://www.princetoncouncil.org/members/receive-membership-benefits.html )

On June 30th, July 7th and July 21st between 5 and 8pm, the Council will host three “Is Your Business Fluent In Foreign?” receptions in New York, Washington D.C. and Princeton, N.J., respectively. These receptions will feature important speakers from Ambassadors and U.S. Government officials to international corporate practitioners and industry leading lawyers and journalists. The presentations will offer high-level networking opportunities, surprise performances and the chance to learn about how to grow their business through exports, insure against political risks, participate in international infrastructure projects and contribute to international economic development.  Please Save the Dates and watch your email for upcoming announcements and for your personal invitation.

For the remainder of May and the entire month of June, the Princeton Council is having its annual Membership Drive. All those who purchase Fluent In Foreign Business, either on Amazon.com  http://tinyurl.com/3gf4oeq or through the Princeton Council website (www.princetoncouncil.org) between May 21st and July 1st, will receive a 90-day complimentary corporate membership, a $625 value and a 20% discount on all corporate training and advisory offerings for the duration of the membership. As part of the birthday celebration, the Council is upgrading its Websiste to be unveiled June 1st.

Princeton Council members can enjoy exclusive access to diplomatic hotel rates at some of the leading hotel chains throughout the U.S. and in many foreign countries, with discounts up to 40% off the regular rates. Members also enjoy weekly geopolitical  intelligence briefings from Stratfor, access to exclusive international business opportunities and industry alliances, deeply discounted publication subscriptions including “Foreign Affairs” magazine, reduced rates on language training and translation courses, as well as Berlitz’ proprietary Cultural Navigator ® system.

Additional benefits, of course, include  proprietary educational offerings from the Fluent In Foreign Academy™,  member only business &  foreign affairs networking events as well as  high-level market entry access and advisory services.  Every book purchased through the Princeton Council during the membership drive will be autographed by me. As a way of giving back, I will be donating 20% of the proceeds of every purchase via the Council to the U.S. Tornado Disaster Relief Fund to help the victims of the tornadoes in our Southern states.  To arrange for corporate purchases or any service issues please contact kgigineishvili@princetoncouncil.org .

My colleagues at the Princeton Council on World Affairs and I are deeply committed to international economic development and foreign affairs issues.  We will continue to  do all we can to help facilitate economic development and seek out international business opportunities for our members.  I hope you enjoy the book and I welcome your comments, reviews and suggestions.  Also, I look forward to meeting all of you at the upcoming Princeton Council events and during my promotional book tour.

For event sponsorship information, conference or corporate function speaking engagements, to arrange a private book signing or advisory assignment, please contact Bambe Levine or David Reich at 212 490-6500.  I can be reached  at agordin@broadstreetcap.com or agordin@princetoncouncil.org .

http://www.amazon.com/FLUENT-FOREIGN-Business-Company-Expanding/dp/1462862780/ref=sr_1_5?s=books&ie=UTF8&qid=1305859807&sr=1-5l .