[Federal Register Volume 59, Number 190 (Monday, October 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24390]


[[Page Unknown]]

[Federal Register: October 3, 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 Democratic Socialist Republic 
of Sri Lanka (``Borrower'') as part of USAID's development assistance 
program. At this time, the Government of Sri Lanka has authorized USAID 
to request proposals from eligible lenders for a loan under this 
program of $10 Million U.S. Dollars (US$10,000,000). The Government of 
Sri Lanka (``GOSL'') has retained the services of a Financial Advisor 
for this borrowing. Interested U.S. lenders or investment bankers may 
submit bids either directly to the Borrower's representative and USAID 
or through the Financial Advisor retained by GOSL for the borrowing.
    The names and addresses of (1) the Borrower's representative, and 
(2) the Borrower's Financial Advisor for this financing (for those who 
wish to bid through the Financial Advisor), to be contacted by 
interested U.S. lenders or investment bankers, as well as the amount of 
the loan and project number, are indicated below:

Government of Sri Lanka

Project No.: 383-HG-004--$10,000,000
Housing Guaranty Loan No.: 383-HG-004 A01
1. Attention: (Mrs.) V.M.Y. Casie Chitty, Director General, Address: 
Ministry of Finance, Department of Fiscal Policy and Economic Affairs, 
The Secretariat, Colombo 1, Sir Lanka, Telex No.: 21409 CE, Telefax 
No.: 011 (94) 1-449-823 (preferred communication), Telephone Nos.: 011 
(94) 1-433-357 or 011 (94) 1-434-278.
2. Attention: Mr. Miner H. Warner, President, Address: Public Resources 
International, 21 West Street (27th Floor), New York, N.Y. 10006, 
Telefax No.: (212) 363-8399 (preferred communication), Telephone No.: 
(212) 363-8383.

    Interested lenders should contact the Borrower, or its Financial 
Advisor (if they wish to bid via GOSL's Financial Advisor), as soon as 
possible and indicate their interest in providing financing for the 
Housing Guaranty Program. Interested lenders should submit their bids 
direct to the Borrower's representative with copies to the Borrower's 
Financial Advisor by Tuesday, September 20, 1994, 12:00 noon Eastern 
Daylight Time. Bids should be open for a period of 48 hours from the 
bid closing date. Please note that the Borrower reserves the right to 
accept or reject any bid without being obliged to give any reasons. 
Copies of all bids should be simultaneously sent to the following:
1. 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
2. Ms. Kamalini Fernando, Housing Advisor, USAID/Colombo, Sri Lanka 
(Street address: USAID/Colombo, 356 Galle Road, Colombo, Sri Lanka), 
Telefax No.: 011 (94) 1-574-333 or 011 (94) 1-574-500 (preferred 
communication), Telephone No.: 011 (94) 1-574-296
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, Telefax No.: 892703 AID WSA, Telefax No.: (202) 663-
2552 or (202) 663-2507 (preferred communication), Telephone No.: 202/
663-2530 or (202) 663-2547.

    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: U.S. $10 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.
    (3) Interest Rate: Alternatives of both fixed and variable rate 
loans are requested.
    (a) Variable Interest Rate: To be based on the three-month or six-
month British Bankers Association LIBOR, preferably with terms relating 
to Borrower's right to convert to fixed. The rate should be adjusted 
weekly.
    (b) Fixed Interest Rate: If rates are to be quoted on a spread over 
an index, the lender should use as its index a long bond, specifically 
the 7\1/2\% U.S. Treasury bond due November 15, 2024. Such rate is to 
be set at the time of acceptance.
    (5) Prepayment:
    (a) Offers should include any options for prepayment and mention 
prepayment premiums, if any.
    (b) Federal statutes governing the activities of the USAID Housing 
Guaranty Program 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, or related, requirements, USAID reserves the right, among its 
other rights and remedies, 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: Please note that Lenders' placement fees (if any), legal 
fees, and out-of-pocket expenses are to be included in the rate quoted 
for this financing (i.e., such fees will not be deductible from the 
proceeds of the loan). The initial upfront fees of USAID and the Paying 
and Transfer Agent shall be payable at closing from the proceeds of the 
loan. In the event of bidding through the Financial Advisor, the 
Investor is required to arrange with the Financial Advisor regarding 
the fees to be paid, which are also to be included in the interest rate 
to be quoted.
    (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 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 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 No.: (202) 663-2552 or 663-2507, Telephone: 202/663-2530.

    Dated: September 9, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 94-24390 Filed 9-30-94; 8:45 am]
BILLING CODE 6116-01-M