[Federal Register Volume 59, Number 224 (Tuesday, November 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28740]


[[Page Unknown]]

[Federal Register: November 22, 1994]


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INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

Agency for International Development

 

Housing Guaranty Program; Notice of Investment Opportunity

    The U.S. Agency for International Development (USAID) has 
authorized the guaranty of a loan to the Government of the Kingdom of 
Morocco (``Borrower'') as part of USAID's development assistance 
program. The proceeds of this loan will be used to enhance land 
development for shelter projects for the benefit of low-income families 
in Morocco. At this time, the Borrower has authorized USAID to request 
proposals from eligible lenders for a loan under this program of 20 
million U.S. dollars (US$20,000,000). 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:

Kingdom of Morocco

Project No.: 608-HG-004--$20,000,000
Housing Guaranty Loan No.: 608-HG-005 A01
Attention: Mr. Thami El Barki, Adjoint au Directeur du Tresor et de 
Finances Exterieures, Ministere de Finances
Mailing address: Direction du Tresor et des Finances, Exterioeures, 
Ministere de Finances, Boulevard Mohamed V, Rabat, Morocco
Telex No.: 36.860
Telefax No.: 212-7-764-950 (preferred communication)
Telephone No.: 212-7-762-717

    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, December 6, 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:

Ms. Erna Kerst, Housing and Urban Development Office, RHO USAID/Rabat, 
Morocco, c/o American Embassy, PSC 74, Box 022, APO AE 09718 (Street 
address: USAID/Rabat, 137 Avenue Allal Ben Abdellah, B.P. 120, Rabat, 
Morocco
Telex No.: 31005M
Telefax No.: 212-7-707-930 (preferred communication)
Telephone No.: 212-7-762-265, ext. 2346

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, 
D.C. 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. $20 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 Association LIBOR, preferably with terms relating to Borrower's 
right to convert to fixed. The rate should be adjusted weekly.
    (c) Variable Interest Rate With ``Cap'': 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. The rate 
should be adjusted weekly.
    (5) Prepayment:
    (a) Offers should include any options for prepayment and mention 
prepayment premiums, if any, and specify the earliest date the option 
can be exercised without penalty.
    (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. All fees should be 
clearly specified in the offer.
    (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 loan 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 loan 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 obtain 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 16, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, Agency for International Development.
[FR Doc. 94-28740 Filed 11-21-94; 8:45 am]
BILLING CODE 6116-01-M