[Federal Register Volume 59, Number 84 (Tuesday, May 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10598]
[[Page Unknown]]
[Federal Register: May 3, 1994]
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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 Republic of Chile, acting
through its Ministry of Housing and Urban Development (``Borrower'') as
part of USAID's development assistance program. The proceeds of these
loans will be used to finance infrastructure and shelter projects for
low-income families in Chile. At this time, the Ministry of Finance of
the Republic of Chile has authorized USAID to request proposals from
eligible lenders for a loan under this program of $10 Million U.S.
Dollars (US$10,000,000). 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:
Republic of Chile
Project No: 513-HG-010-$10,000,000
Housing Guaranty Loan No: 513-HG-010 A01
Attention: Mr. Jose Pablo Arellano Marin, Director de Presupuestos,
Ministry of Finance, Teatinos 120, piso 12, Santiago, Chile, Telefax
No.: (562) 671-3814 (preferred communication), Telephone No.: (562)
696-1368 or (562) 671-0672.
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 17, 1994, at 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. Thomas Nicastro, USAID Representative/Chile, USAID/Chile, American
Embassy Codina Bldg., 1343 Agostinas, Santiago, Chile, Telefax No:
(562) 638-0931 (preferred communication), Telephone No: (562) 671-0133
or 638-1014
and
Mr. William Yaeger, Director, RHUDO, South America, USAID/Quito,
Ecuador, c/o American Embassy, Unit 5330, APO AA 34039-3420, Telefax
No.: (593) 2-561-228 (preferred communication), Telephone No.: (593) 2-
544-365
Mr. David Grossman/Mr. Peter Pirnie, U.S. Agency for International
Development, Office of Housing and Urban Programs, G/DG/H, Room 401,
SA-2, Washington, D.C. 20523-0214, Telex No.: 892703 AID WSA, Telefax
No.: 202/663-2552 (preferred communication), Telephone No.: 202/663-
2548/2530.
For your information the Borrower is currently considering the
following terms:
(1) Amount: US$10 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 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 fixed rate, and variable 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.
(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: Offers should include options for prepayment and
mention prepayment premiums, if any.
(6) Fees: Offers should specify the placement fees and other
expenses, including USAID fees, the 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. The Republic of Chile
reserves the right to not accept any bid which, in its estimation, is
non-competitive. 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: Mr. Peter
Kimm, Director, Office of Housing and Urban Programs, U.S. Agency for
International Development, Room 401, SA-2, Washington, DC 20523-0214,
Telephone: 202/663-2530.
Dated: April 28, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau of Global Programs, Field Support and
Research, U.S. Agency for International Development.
[FR Doc. 94-10598 Filed 5-2-94; 8:45 am]
BILLING CODE 6116-01-M
