[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4135]


[[Page Unknown]]

[Federal Register: February 23, 1994]


                                                    VOL. 59, NO. 36

                                       Wednesday, February 23, 1994
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Agency for International Development

 

Loan Guarantees to Israel; Notice of Investment Opportunity

    The Government of Israel (the ``GOI'') wishes to select managing 
underwriters for the structuring and sale of U.S. Agency for 
International Development (``USAID'')-guaranteed loans. The USAID-
guaranteed loans have been authorized by Public Law 102-391, and are 
being provided in connection with Israel's extraordinary humanitarian 
effort to resettle and absorb immigrants into Israel from the republics 
of the former Soviet Union, Ethiopia and other countries.
    The legislation authorizes the guaranty by USAID of up to $10 
billion principal amount of loans over the next five years, with a 
maximum of $2 billion in loans, offered in one or more tranches, to be 
guaranteed in each of the five fiscal years. This Notice is in 
connection with the GOI's selection of managing underwriters for an 
offering of up to $1.563 billion contemplated to be made under the 
authorization for the current fiscal year.
    The GOI would like to receive proposals from interested 
underwriters on an expedited basis. A Request for Proposals (``RFP'') 
will be available from the GOI on or about February 21, 1994. Proposals 
must be submitted, in accordance with RFP, by 4:00 p.m. on March 1, 
1994. For information regarding the submission of proposals, please 
contact Mr. Eliahu Ziv-Zitouk, Chief Fiscal Officer, Ministry of 
Finance of the Government of Israel, 350 Fifth Avenue, New York, NY 
10118 (fax: 212/736-2759).
    To accomplish the GOI's objectives, the GOI's lead manager must at 
a minimum:
    1. Perform and discuss with the GOI and its financial advisor a 
complete quantitative analysis of the cash flows generated by the 
proposed structures and proposed pricing of securities;
    2. Complete the underwriting of all securities offered for sale;
    3. Establish and maintain a post-sale trading market for the 
securities; and
    4. Coordinate all activities relating to the proposed financing 
plan with the GOI and its financial advisor.
    Selection of underwriters and the terms of the loans are initially 
subject to the individual discretion of the GOI and thereafter subject 
to approval by USAID. In order to be eligible for selection as a 
managing underwriter, an institution must be a member of the National 
Association of Securities Dealers, and otherwise meet legal 
requirements for serving in such role.
    The full repayment of the loans will be guaranteed by USAID. To be 
eligible for an USAID guaranty, the loans must be repayable in full no 
later than the thirtieth anniversary of the disbursement of the 
principal amount thereof. 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 226 of the Foreign Assistance Act of 
1961, as amended. Disbursements under the loans will be subject to 
certain conditions required of the GOI by USAID as set forth in 
agreements between USAID and the GOI.
    Additional information regarding USAID's responsibilities in this 
guaranty program can be obtained from the undersigned: Room 3328, New 
State, Washington, DC 20523-0030, Telephone: 202/647-6504.

    Dated: February 17, 1994.
Michael G. Kitay,
Assistant General Counsel, Agency for International Development.
[FR Doc. 94-4135 Filed 2-22-94; 8:45 am]
BILLING CODE 6116-01-M