[Federal Register Volume 60, Number 116 (Friday, June 16, 1995)]
[Notices]
[Pages 31733-31734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14866]



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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 Tunisia 
(``Borrower'') as part of USAID's development assistance program. The 
proceeds of this loan 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 $17 Million U.S. Dollars (US$17,000,000). The name and 
address of the Borrower's representative to be contacted by interested 
U.S. lenders or investment bankers, the amount of the loan and project 
numbers are indicated below:

Government of Tunisia

Project Nos: (1) 664-HG-004D--(2) 664-HG-V

    Amount: US$17,000,000

Housing Guaranty Loan No.:

    664-HG-009 B01 (tranche A-$2,000,000)
    664-HG-10 A01 (tranche B-$5,000,000)
    664-HG-11 B01 (tranche C-$10,000,000)

Attention: Mr. Said MRABAT, Directeur General des Finances Exterieures, 
Banque Centrale de Tunisie, Tunis, Tunisia

    Telex Nos.: BANCENT 15375, 13311, 13308
    Telefax No.: 216-1-340-615 (preferred communication)
    Telephone Nos.: 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 representative by Tuesday, June 27, 1995, 12:00 noon Eastern 
Daylight Savings 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, USAID/NENA, USAID/Tunisia, c/o American Embassy, 
Tunis, Tunisia. (Street address: 144, Avenue de la Liberte, Tunis, 
Tunisia); Telex No.: 14182 

[[Page 31734]]
USAID TN; Telefax No.: 216-1-783-350 (preferred communication); 
Telephone No.: 216-1-784-300.
Mr. Charles Billand, Assistant Director, Mr. Peter Pirnie, Financial 
Advisor. Address: U.S. Agency for International Development, Office of 
Environment and Urban Programs, G/ENV/UP, Room 409, SA-18, Washington, 
D.C. 205023-1822. Telex No.: 892703 AID WSA; Telefax No.: 703/875-4384 
or 875-4639 (preferred communication); Telephone No.: 703/875-4300 or 
875-4510.

    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: U.S. $17 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, variable rates and 
variable rates with ``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\5/8\% U.S. Treasury Bond due February 15, 2025. 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 ``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. The rate 
should be adjusted weekly.
    (5) Prepayment: (a) Offers should include any 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 hereafter, subject to certain conditions required of the 
Borrower by USAID as set forth in agreement 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: (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 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. Michael J. 
Lippe, Director, Office of Environment and Urban Programs, U.S. Agency 
for International Development, Room 409, SA-18, Washington, D.C. 20523-
1822, Fax Nos: 703/875-4384 or 875-4639, Telephone: 703/875-4300.

    Dated June 13, 1995.

Michael G. Kitay,

Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.

[FR Doc. 95-14866 Filed 6-15-95; 8:45 am]

BILLING CODE 6116-01-M