97-1130. Housing Guaranty Program; Notice of Investment Opportunity

[Federal Register Volume 62, Number 11 (Thursday, January 16, 1997)]
[Notices]
[Pages 2385-2386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1130]


=======================================================================
-----------------------------------------------------------------------

AGENCY FOR INTERNATIONAL DEVELOPMENT


Housing Guaranty Program; Notice of Investment Opportunity

    The U.S. Agency for International Development (USAID) has 
authorized the guaranty of a loan to MUFIS, a.s. (``Borrower''), 
Prague, Czech Republic, as part of USAID's development assistance 
program. The proceeds of this loan will be used to enhance the 
municipal infrastructure finance system for shelter-related 
infrastructure for the benefit of low-income families in the Czech 
Republic. At this time, the Borrower has authorized USAID to request 
proposals from eligible lenders

[[Page 2386]]

for a loan under this program of $14 million U.S. Dollars 
(US$14,000,000). The name and address of the Borrower's representatives 
to be contacted by interested U.S. lenders or investment bankers, and 
the amount of the loan and project number are indicated below:

Czech Republic

    Project No.: 192-HG-001-$14,000,000.
    Housing Guaranty Loan No.: 192-HG-003 A01.
    (1) Attn: Mr. Ladislav Macka, MUFIS, a.s., Mailing Address: 
Jeruzalemska 4, 111 21 Praha 1 Czech Republic, Telefax No. (preferred 
communication): 42-2-260-273, Telephone No.: 42-2-21009-440/42-2-21009-
454.
    (2) Attn: Ms. Vera Kamenickova, The Ministry of Finance, Mailing 
Address: Letenska 15, 118 10 Praha 1 Czech Republic, Telefax No. 
(preferred communication): 42-2-2454-2120, Telephone No.: 42-2-2454-
2258.
    Interested lenders should contact the Borrower as soon as possible 
and indicate their interest in providing financing for the Housing 
Guaranty Program. Interested lenders should submit their bids to all of 
the Borrower's representatives by the bid closing date, Tuesday, 
January 28, 1997, 12:00 noon Eastern Standard Time. Bids should be open 
for a period of 48 hours from the bid closing date. If, in the 
judgement of the Borrower, interest rates should rise significantly 
during the bid solicitation period, the Borrower reserves the right to 
refuse all offers. Copies of all bids should be simultaneously sent to 
the following:
    (1) Mr. Fred Van Antwerp, U.S. Agency for International 
Development, USAID/Prague, Czech Republic, (Street address: Trziste 15, 
118 01 Praha, Czech Republic), Telefax No. (preferred communication): 
42-2-2451-0340 or 0341, Telephone No.: 42-2-2451-0847.
    (2) Ms. Viviann Gary/Mr. Peter Pirnie, U.S. Agency for 
International Development, Office of Environment and Urban Program, G/
ENV/UP, Room 409, SA-18, 1601 North Kent Street, Rosslyn, VA 22209, 
Telex No.: 892703 AID WSA, Telefax No. (preferred communication): (703) 
875-4639 or [phone], Telephone No.: [phone] or (703) 875-
4300.
    (3) Mr. William Frej, U.S. Agency for International Development, 
USAID/Warsaw, Poland, (Street address: Aleje Jerozolimskie 56C 00803 
Warszawa, Poland), Telefax No. (preferred communication): 48-22-
6302486, Telephone No.: 48-22-6302480.
    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: U.S. $14 million.
    (2) Term: 30 years; 15 years.
    (3) Grace Period: Ten years' grace on repayment of principal. 
(During grace period, semi-annual payments of interest only.) Semi-
annual level payments of principal and interest over the remaining 20 
or 5-year life of the loan are requested.
    (4) Interest Rate: Alternatives of (a) 30-Year fixed, and (b) 15-
Year fixed are requested.
    (a) 30-Year Fixed Interest Rate: If rates are to be quoted based on 
a spread over an index, the lender should use as its index a long bond, 
specifically the yield on the 6\1/2\% U.S. Treasury Bond due November 
15, 2026. Such rate is to be set at the time of acceptance. Interest to 
be payable semi-annually in arrears on a 30/360 day basis.
    (b) 15-Year Fixed Interest Rate: If rates are to be quoted on a 
spread over an index, the lender should use as the index the yield of 
the 6\1/2\% U.S. Treasury Bond due October 2006. Such rate is to be set 
at the time of acceptance. Interest to be payable semi-annually in 
arrears on a 30/360 day basis.
    (5) Prepayment:
    (a) Offers should include options for repayment and identify 
prepayment premiums, if any, and specify the earliest date the option 
can be exercised without penalty.
    (b) Only in an extraordinary event to assure compliance with 
statutes binding USAID, USAID reserves the right to accelerate the loan 
at par (it should be noted that since the inception of USAID Housing 
Guaranty Program in 1962, USAID has not exercised its right of 
acceleration).
    (6) Fees: Offers should specify the placement fees and other 
expenses, including USAID fees and Paying and Transfer Agent fees. 
Lenders are requested to include all legal fees and out-of-pocket 
expenses in their placement fee. Such fees and expenses shall be 
payable at closing from the proceeds of the loan. All fees should be 
clearly specified in the offer.
    (7) Closing Date: Not to exceed 60 days from date of selection of 
lender unless by mutual agreement of all the parties.
    Selection of investment bankers and/or lenders and the terms of the 
loan are initially subject to the individual discretion of the Borrower 
and, thereafter, subject to approval by USAID. Disbursements under the 
loan will be subject to certain conditions required of the Borrower by 
USAID as set forth in agreements between USAID and the Borrower.
    The full repayment of the loans will be guaranteed by USAID. The 
USAID guaranty will be backed by the full faith and credit of the 
United States of America and will be issued pursuant to authority in 
Section 222 of the Foreign Assistance Act of 1961, as amended (the 
``Act'').
    Lenders eligible to receive the USAID guaranty are those specified 
in Section 238(c) of the Act. They are: (1) U.S. citizens; (2) domestic 
U.S. corporations, partnerships, or associations substantially 
beneficially owned by U.S. citizens; (3) foreign corporations whose 
share capital is at least 95 percent owned by U.S. citizens; and (4) 
foreign partnerships or associations wholly owned by U.S. citizens.
    To be eligible for the USAID guaranty, the loan must be repayable 
in full no later than the thirtieth anniversary of the disbursement of 
the principal amount thereof and the interest rates may be no higher 
than the maximum rate established from time to time by USAID.
    Information as to the eligibility of investors and other aspects of 
the USAID housing guaranty program can be obtained from:
    Ms. Viviann Gary, Director, Office of Environment and Urban 
Programs, U.S. Agency for International Development, Room 409, SA-18, 
1601 N. Kent Street, Rosslyn, VA 22209, Fax Nos.: [phone] or 
[phone], Telephone: [phone] or [phone].

    Dated: January 9, 1997.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research Agency for International Development.
[FR Doc. 97-1130 Filed 1-15-97; 8:45 am]
BILLING CODE 6116-01-M