[Federal Register Volume 59, Number 219 (Tuesday, November 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28265]


[[Page Unknown]]

[Federal Register: November 15, 1994]


                                                   VOL. 59, NO. 219

                                         Tuesday, November 15, 1994

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 Government of Tunisia 
(``Borrower'') as part of USAID's development assistance program. The 
proceeds of these loans will be used to finance environmental 
infrastructure and services for the benefit of low-income families in 
Tunisia. At this time, the Government of Tunisia 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 name and 
address of the Borrower's representatives to be contacted by interested 
U.S. lenders or investment bankers, and the amount of the loan and 
project number are indicated below:

Government of Tunisia

    Project No.: 664-HG-V--$10,000,000.
    Housing Guaranty Loan No.: 664-HG-011 A01.
    Attention: Mr. Said Mrabet, Directeur General des Finances 
Exterieures; Banque Centrale de Tunisie, Tunis, Tunisia.
    Telex No.: BANCENT 15375, 13308.
    Telefax No.: 216-1-340-615 (preferred communication).
    Telephone No.: 216-1-351-813, 254-000.
    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 representatives by Tuesday, November 29, 1994, 12:00 noon 
Eastern Standard 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. Lane Smith or Ms. Monia Ben Khalifa, Regional Housing and Urban 
Development Office, RHUDO/NENA-USAID/Tunisia, c/o American Embassy, 
Tunis, Tunisia (Street address: 144 Avenue de la liberte, Tunis, 
Tunisia) Telex No.: 14182 USAID TN

    Telefax No.: 216-1-783-350 (preferred communication).
    Telephone No.: 216-1-784-300.
    Mr. David Grossman/Mr. Peter Pirnie.
    Address: U.S. Agency for International Development, Office of 
Environment and Urban Programs, G/ENV/UP, Room 401, SA-2, Washington, 
DC 20523-0214.
    Telex 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.
    (4) Interest Rate: Alternatives of fixed and variable rates, and 
variable rates with interest ``caps'', 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 7\1/2\% U.S. Treasury Bond due November 15, 2024. Such 
rate is to be set at the time of acceptance.
    (b) Variable Interest Rate: To be based on the six-month British 
Bankers Associated LIBOR, preferably with terms relating to Borrower's 
right to covert to fixed. The rate should be adjusted weekly.
    (c) Variable Interest Rate with ``Caps'': Offers should include a 
maximum (cap) rate ranging from 10% to 12% per annum, and are to be 
based on the six-month British Bankers Association LIBOR, preferably 
with terms relating to the 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) 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, 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.
    (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 to 
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: (a) 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 USAID guaranty, the loans must be repayable in 
full not 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 Nos: (202) 663-2552 or 663-2507, Telephone: (202) 
663-2530.

    Dated: November 10, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, Agency for International Development.
[FR Doc. 94-28265 Filed 11-14-94; 8:45 am]
BILLING CODE 6116-01-M