[Federal Register Volume 61, Number 86 (Thursday, May 2, 1996)]
[Notices]
[Pages 19637-19638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11008]
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INTERNATIONAL DEVELOPMENT COOPERATION AGENCY
Agency for International Development
Housing Guaranty Program; Notice of Investment Opportunity
The U.S. 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 representative 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--Amount: US $15,000,000
Housing Guaranty Loan No.: 613-HG-005 A01
Attention: Mr. C.T. Kuwaza, Senior Secretary for Finance Ministry of
Finance (Street address: Munhumutapa Building, Samora Machel Avenue,
Private Bag 7705 Causeway, Harare, Zimbabwe). Telex No.: 22141 ZIMGOV
Telefax: 011-263-4-792-750 (preferred communication)
Telephone Nos.: 011-263-4-794-571 through 9
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 14, 1996, 12:00 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, Regional Housing and Urban
Development Office, 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. Peter Pirnie, Financial Advisor, U.S. Agency for International
Development, Office of Environment and Urban Programs, G/ENV/UP, Room
409, SA-18, Washington, DC 20523-1822, Telex No.: 892703 AID WSA,
Telefax Nos.: 703/875-4639 or 875-4384 (preferred communication)
Telephone Nos.: 703/875-4300 or 875-4510.
For your information the Borrower is currently considering the
following terms:
(1) Amount: U.S. $15 million.
(2) Term: 30 years.
(3) Grace Period: Ten years grace on repayment of principal.
(During grace period, semi-annual payments of interest only). If
variable interest rate, repayment of principal to amortize in equal,
semi-annual installments over the remaining 20-year life of the loan.
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 both fixed and variable rate
loans 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
yield, specifically the 6% U.S. Treasury Bond due February 15, 2026.
Such rate is to be set at the time of acceptance.
(b) Variable Interest Rate: To be based on the six-month British
Bankers Association LIBOR, preferably with terms relating to Borrower's
right to convert to fixed. The rate should be adjusted weekly.
(5) Prepayment:
(a) Offers should include any 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, 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 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
[[Page 19638]]
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 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: Ms. Viviann
Gary, Director, Office of Environment and Urban Programs, U.S. Agency
for International Development, Room 409, SA-18, Washington, D.C. 20523-
1822, Fax Nos: 703/875-4384 or 875-4639, Telephone: 703/875-4300.
Dated: April 26, 1996.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support
and Research, U.S. Agency for International Development.
[FR Doc. 96-11008 Filed 5-1-96; 8:45 am]
BILLING CODE 6116-01-M
