[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10080]


[[Page Unknown]]

[Federal Register: April 26, 1994]


                                                    VOL. 59, NO. 80

                                            Tuesday, April 26, 1994

AGENCY FOR INTERNATIONAL DEVELOPMENT

 

Housing Guaranty Program; Investment Opportunity

    The Agency for International Development (USAID) has authorized the 
guaranty of loans to the Government of Zimbabwe (``Borrower'') as part 
of USAID's development assistance program. The proceeds of these loans 
will be used for mortgage finance and to finance shelter-related 
infrastructure for low-income families in Zimbabwe. At this time, the 
Government of Zimbabwe has authorized USAID to request proposals from 
eligible lenders for a loan under this program of Fifteen Million U.S. 
Dollars (US$15,000,000). 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:

Government of Zimbabwe

    Project No: 613-HG-004--US$15,000,000.
    Housing Guaranty Loan No: 613-HG-004 A01.
    Attention: Mrs. Diana Z. Guti, Secretary for Finance, Ministry of 
Finance, (Street address: Munhumutapa Building, Samora Machel Avenue, 
Private Bag 7705, Causeway, Harare, Zimbabwe), Telex No.: 22141 ZIMGOV, 
Telephone No.: 011-263-4-794-571 through 9 Telefax No.: 011-263-4-792-
750 (preferred communication).
    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, May 10, 1994, at 12 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. Michael Enders, Mission Housing Officer, USAID/
Harare, 1 Pascoe Avenue, Harare, Zimbabwe, Telefax No.: 011-263-4-720-
722 (preferred communication), Telephone No.: 011-263-4-720-757, and 
Mr. David Grossman/Mr. Peter Pirnie, Agency for International 
Development, Office of Housing and Urban Programs, G/DG/H, room 401, 
SA-2, Washington, DC 20523-0214, Telex No.: 892703 AID WSA, Telefax 
No.: 202-663-2552 (preferred communication), Telephone No.: 202-663-
2530/2547.
    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: US$15 million.
    (2) Term: 30 years.
    (3) Grace Period: Ten years on the repayment of principal (during 
grace period, semi-annual payments of interest only). 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 fixed 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\1/4\% U.S. Treasury Bond due August 15, 2023. Such 
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.
    (b) Federal statutes governing the activities of USAID require that 
the proceeds of USAID-guaranteed loans be used to provide affordable 
shelter and related infrastructure and services to below median-income 
families. In the extraordinary event that the Borrower materially 
breaches its obligation to comply with this requirement, USAID reserves 
the right, among its other rights and remedies, to accelerate the loan.
    (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.
    (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 the 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. Peter 
Kimm, Director, Office of Housing and Urban Programs, Agency for 
International Development, room 401, SA-2, Washington, DC 20523-0214, 
Telephone: 202/663-2530.

    Dated: April 24, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, Agency for International Development.
[FR Doc. 94-10080 Filed 4-25-94; 8:45 am]
BILLING CODE 6116-01-M