[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10080]
[[Page Unknown]]
[Federal Register: April 26, 1994]
VOL. 59, NO. 80
Tuesday, April 26, 1994
AGENCY FOR INTERNATIONAL DEVELOPMENT
Housing Guaranty Program; Investment Opportunity
The Agency for International Development (USAID) has authorized the
guaranty of loans to the Government of Zimbabwe (``Borrower'') as part
of USAID's development assistance program. The proceeds of these loans
will be used for mortgage finance and to finance shelter-related
infrastructure for low-income families in Zimbabwe. At this time, the
Government of Zimbabwe has authorized USAID to request proposals from
eligible lenders for a loan under this program of Fifteen Million U.S.
Dollars (US$15,000,000). The name and address of the Borrower's
representatives to be contacted by interested U.S. lenders or
investment bankers, the amount of the loan and project number are
indicated below:
Government of Zimbabwe
Project No: 613-HG-004--US$15,000,000.
Housing Guaranty Loan No: 613-HG-004 A01.
Attention: Mrs. Diana Z. Guti, Secretary for Finance, Ministry of
Finance, (Street address: Munhumutapa Building, Samora Machel Avenue,
Private Bag 7705, Causeway, Harare, Zimbabwe), Telex No.: 22141 ZIMGOV,
Telephone No.: 011-263-4-794-571 through 9 Telefax No.: 011-263-4-792-
750 (preferred communication).
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 the
Borrower's representative by Tuesday, May 10, 1994, at 12 Noon Eastern
Daylight Time. Bids should be open for a period of 48 hours from the
bid closing date. Copies of all bids should be simultaneously sent to
the following: Mr. Michael Enders, Mission Housing Officer, USAID/
Harare, 1 Pascoe Avenue, Harare, Zimbabwe, Telefax No.: 011-263-4-720-
722 (preferred communication), Telephone No.: 011-263-4-720-757, and
Mr. David Grossman/Mr. Peter Pirnie, Agency for International
Development, Office of Housing and Urban Programs, G/DG/H, room 401,
SA-2, Washington, DC 20523-0214, Telex No.: 892703 AID WSA, Telefax
No.: 202-663-2552 (preferred communication), Telephone No.: 202-663-
2530/2547.
For your information the Borrower is currently considering the
following terms:
(1) Amount: US$15 million.
(2) Term: 30 years.
(3) Grace Period: Ten years on the repayment of principal (during
grace period, semi-annual payments of interest only). If fixed interest
rate, semi-annual level payments of principal and interest over the
remaining 20-year life of the loan.
(4) Interest Rate: Alternatives of fixed rate are requested.
(a) 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 6\1/4\% U.S. Treasury Bond due August 15, 2023. Such
rate is to be set at the time of acceptance.
(5) Prepayment: (a) Offers should include options for prepayment
and mention prepayment premiums, if any.
(b) Federal statutes governing the activities of USAID require that
the proceeds of USAID-guaranteed loans be used to provide affordable
shelter and related infrastructure and services to below median-income
families. In the extraordinary event that the Borrower materially
breaches its obligation to comply with this requirement, USAID reserves
the right, among its other rights and remedies, to accelerate the loan.
(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.
(7) Closing Date: As early as practicable, but not to exceed 60
days from date of selection of lender.
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 the 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 loans 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: Mr. Peter
Kimm, Director, Office of Housing and Urban Programs, Agency for
International Development, room 401, SA-2, Washington, DC 20523-0214,
Telephone: 202/663-2530.
Dated: April 24, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support
and Research, Agency for International Development.
[FR Doc. 94-10080 Filed 4-25-94; 8:45 am]
BILLING CODE 6116-01-M
