[Federal Register Volume 60, Number 163 (Wednesday, August 23, 1995)]
[Notices]
[Pages 43815-43816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20951]
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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 Banco Centroamericano de
Integracion Economica (CABEI) (``Borrower'') as part of USAID's
development assistance program. The proceeds of this loan will be used
for a municipal infrastructure finance program to finance urban
environmental infrastructure for the
[[Page 43816]]
benefit of low-income families in Central American countries. At this
time, CABEI has authorized USAID to request proposals from eligible
lenders for a loan under this program of $7 Million U.S. Dollars
(US$7,000,000). 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:
Banco Centroamericano De Integracion Economica
Project No: 596-HG-010--Amount: US$7,000,000.
Housing Guaranty Loan No.: 596-HG-007 A01, 596-HG-010 A01.
1. Attention: Mr. Jaime Chavez-Almendares, Financial Manager, Banco
Centroamericano de Integracion Economica (CABEI), P.O. Box 772,
Tegucigalpa, D.C., Honduras.
Telefax Nos.: 011/(504) 37-0188 or 011/(504) 37-9173 (preferred
communication).
Telephone Nos.: 011/(504) 37-3119 or 011/(504) 38-4901.
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 limit their bids to the
Borrower's representatives by Wednesday, September 6, 1995, 12:00 noon
Eastern Daylight Savings 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. Ronald Carlson, Director, Regional Housing and Urban
Development Office, Central America, USAID/RHUDO/Guatemala, Unit 3323,
APO AA 34024. (Street address: 1 Calle 7-66, Zona 9, 01009, Plaza Uno
Bldg., Guatemala City, Guatemala, C.A.)
Telefax Nos.: 011/(502) 2-320-663 or 011/(502) 2-311-151 (preferred
communication).
Telephone Nos.: 011/(502) 2-320-603 or 011/(502) 2-320-202.
Mr. Charles Billand, Assistant Director, Mr. Peter Pirnie,
Financial Advisor.
Address: 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 No.: 703/875-4384 or 875-4639 (preferred communication).
Telephone No.: 703/875-4300 or 875-4510.
For your information the Borrower is currently considering the
following terms:
(1) Amount: U.S. $7 million.
(2) Term: Alternatives of 15, 20, 25 and 30 years.
(3) Grace Period: Five years grace on repayment of principal. (During
grace period, semi-annual payments of interest only. Thereafter, semi-
annual level payments of principal and interest over the remaining life
of the loan).
(4) Interest Rate: Quotes for fixed rate, only.
Fixed Interest Rate: For bid comparison purposes, rates are to be
quoted based on a spread over an index, specifically the 6\7/8\% U.S.
Treasury Bond due August 15, 2025. The actual 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. Options for prepayment should be on the
following basis:
(i) For a 15 year term, callable after five years on any semi-
annual payment date.
(ii) For 20, 25, 30 year terms, callable after 10 years on any
semi-annual payment date.
(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, Paying and Transfer Agent fees, and out of pocket
expenses, etc. Lenders are requested to include all legal fees 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: 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: Mr. Michael J.
Lippe, Director, Office of Environment and Urban Programs, U.S. Agency
for International Development, Room 409, SA-18, Washington, DC 20523-
1822, Fax Nos: 703/875-4384 or 875-4639, telephone: 703/875-4300.
Dated: August 18, 1995.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support
and Research, U.S. Agency for International Development.
[FR Doc. 95-20951 Filed 8-22-95; 8:45 am]
BILLING CODE 6116-01-M
