96-15029. Housig Guaranty Program; Notice of Investment Opportunity

[Federal Register Volume 61, Number 115 (Thursday, June 13, 1996)]
[Notices]
[Pages 30094-30095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15029]



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

AGENCY FOR INTERNATIONAL DEVELOPMENT


Housig Guaranty Program; Notice of Investment Opportunity

    The U.S. Agency for International Development (USAID) has 
authorized the guaranty of a loan to Fonds d'Equipment Communal (FEC) 
(``Borrower'') guarantied by the Government of the Kingdom of Morocco 
as part of USAID's development assistance program. The proceeds of this 
loan will be to provide infrastructure and environmental services for 
shelter projects for the benefit of low-income families in Morocco. At 
this time, the Borrower has authorized USAID to request proposals from 
eligible lenders for a loan under this program of $15 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, and the amount of the loan and project number are indicated 
below:

Fonds d'Equipment Communal (FEC) (Kingdom of Morocco)

    Project No.: 608-HG-004.
    Housing Guaranty Loan No.: 608-HG-007 A01.
    Amount: U.S. $15,000,000.
    Attention: Mr. Abdelghani Guezzar, Directeur Financier du FEC, 
Fonds d'Equipement Communal.
    Mailing address: Fonds d'Equipement Communal BP 8020, Rabat, 
Morocco.
    Telex No.: 212-7-365-81.
    Telefax No: 212-7-77-80-95 (preferred communication).
    Telephone No.: 212-777-8055 and 212-7-77-80-91.
    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, June 25, 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: Ms. Erna Kerst, Housing and Urban Development Office, 
RHO USAID/Rabat, Morocco, c/o American Embassy, PSC 74, Box 022, APO AE 
09718, (Street address: USAID/Rabat, 137 Avenue Allal Ben Abdellah, 
B.P. 120, Rabat, Morocco.
    Telex No: 31005M.
    Telefax No: 212-7-70-79-30 (preferred communication).
    Telephone No.: 212-7-76-22-65, ext. 2346.
    Address: Mr. Peter Pirnie, U.S. Agency for International 
Development,

[[Page 30095]]

Office of Environment and Urban Programs, G/ENV/UP, Room 409, SA-18, 
Washington, D.C. 20523-1822.
    Telex No: 892703 AID WSA.
    Telefax No: [phone] or [phone] (preferred 
communication).
    Telephone No: [phone] or [phone].
    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 rates, 
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% 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, 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 
(it should be noted that since the inception of the 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: 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 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: [phone] or 875-4639. Telephone: [phone].

    Dated: June 10, 1996.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 96-15029 Filed 6-12-96; 8:45 am]
BILLING CODE 6116-01-M