96-23359. Housing Guaranty Program; Notice of Investment Opportunity

[Federal Register Volume 61, Number 177 (Wednesday, September 11, 1996)]
[Notices]
[Pages 47956-47957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23359]


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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 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 $26 Million U.S. 
Dollars (US$26,000,000). 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, Housing Guaranty Loan No: 513-HG-010 B01, 
Amount: $26,000,000, Attention: Mr. Jose Pablo Arellano Marin, Director 
de Presupuestos, Ministry of Finance, Teatinos 120, piso 12, Santiago, 
Chile, Telefax No.: [phone] (preferred communication), Telephone 
No.: [phone] or [phone]

    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, September 24, 1996, 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, Embassy of the United 
States of America, Ava, Andres Bello 2800, Las Condes, Santiago, Chile, 
Telefax No: [phone] (preferred communication), Telephone No: 
[phone]
      and
Mr. Kraig Baier, 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. Peter Pirnie, U.S. Agency for International Development, 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.: 703/875-4639 
or 875-4384 (preferred communication), Telephone No.: 703/875-4510/4300

    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: US$26 million.
    (2) Term: 21 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 11-year life of the loan. If fixed 
interest rate, semi-annual level payments of principal and interest 
over the remaining 11-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 6.0% 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 options for prepayment and mention 
prepayment 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 fee. Such fees and expenses shall be 
payable at closing from the proceeds of the loan.

[[Page 47957]]

    (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: Ms. Viviann 
Gary, Director, Office of Environment and Urban Programs, U.S. Agency 
for International Development, Room 409, SA-18, Washington, DC 20523-
1822, Telephone: [phone].

    Dated: September 6, 1996.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 96-23359 Filed 9-10-96; 8:45 am]
BILLING CODE 6116-01-M