94-20014. Housing Guaranty Program; Investment Opportunity

[Federal Register Volume 59, Number 157 (Tuesday, August 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20014]


[[Page Unknown]]

[Federal Register: August 16, 1994]


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AGENCY FOR INTERNATIONAL DEVELOPMENT

 

Housing Guaranty Program; Investment Opportunity

    The U.S. Agency for International Development (USAID) has 
authorized the guaranty of loans to the Government of Pakistan 
(``Borrower'') as part of USAID's development assistance program. At 
this time, the Government of Pakistan 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:

Government of Pakistan

Project No.: 391-HG-001A--$15,000,000

Housing Guaranty Loan No.: 391-HG-002 A01
1. Attention: Mr. Javed Noel, Joint Secretary, External Finance Wing
    Address: Ministry of Finance and Economic Affairs, Q Block, 
Pakistan Secretariat, Islamabad, Pakistan
    Telex No.: 542-02 MIFIN PK
    Telefax No.: 011-92-51-821-941 (preferred communication)
    Telephone Nos;: 011-92-51-821-847
    Attention: Mumtaz Malik, Deputy Secretary

    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 Tuesday, August 30, 1994, 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:

1. Mr. Randall Cummings, Chief, Private Enterprise and Energy Division, 
USAID/Islamabad, Pakistan
    Street address: USAID/Islamabad, Diplomatic Enclave, Ramna 5, 
Islambad, Pakistan
    Telefax No.: 011-92-51-824-086 (preferred communication)
    Telephone No.: 011-92-51-824-071
2. Mr. Earl Kessler, Director/RHUDO/New Delhi, USAID/New Delhi, India
    Street address: c/o American Embassy, Chanakyapuri, New Delhi-110 
021, India
    Telefax No.: 011 (91) 11-686-8594 (preferred communication)
    Telephone No.: 011 (91) 11-686-5301
3. Mr. David Grossman, Assistant Director/Mr. Peter Pirnie, Financial 
Advisor
    Address: U.S. Agency for International Development, Office of 
Environment and Urban Programs, G/ENV/UP, Room 401, SA-2, Washington, 
D.C. 20523-0214
    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 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, 
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: (a) Offers should include any options for 
prepayment and mention prepayments premiums, if any.
    (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 fees. 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.
    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 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 lest 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 not 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 M. 
Kimm, Director, Office of Environment and Urban Programs, U.S. Agency 
for International Development, Room 401, SA-2, Washington, D.C. 20523-
0214, Fax Nos: [phone] or 663-2507, Telephone: [phone].

    Dated: August 10, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 94-20014 Filed 8-15-94; 8:45 am]
BILLING CODE 6116-01-M