[Federal Register Volume 60, Number 127 (Monday, July 3, 1995)]
[Notices]
[Pages 34554-34555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16361]



=======================================================================
-----------------------------------------------------------------------

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 loans to the Banco General S.A., Panama 
(``Borrower'') as part of USAID's development assistance program. The 
proceeds of these loans will be used to finance shelter and shelter-
related infrastructure for the benefit of low-income families in 
Panama. At this time, the Banco General S.A. has authorized USAID to 
request proposals from eligible lenders for a loan under this program 
of $7.0 Million U.S. Dollars (US$7,000,000). 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 
number are indicated below:

Banco General S.A., Panama

Project No: 525-HG-013
Housing Guaranty Loan No.: 525-HG-014 A02
Amount: US$7,000,000

[[Page 34555]]

Attention: Mr. Francisco Sierra, Vice President--Treasury Banco General 
S.A., Panama
(Street address: Avenida Cuba y Calle 34, Panama City, Panama)
Telex No.: 2733 GENERAL PG
Telefax No.: 507/225-2868 (preferred communication)
Telephone Nos.: 507/227-0770 or 507/227-3200

    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, July 11, 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. Michael C. Trott, Chief, General Development Office and Economics, 
USAID, Unit 0949, APO AA 34002, c/o American Embassy, Panama City, 
Panama (Street address: Plaza Regency 2nd Floor, Avenida Via Espana 
#1), Telefax No.: 507/264-0104 (preferred communication), Telephone 
No.: 507/263-6011 and
Mr. Ronald A. Carlson, Director, Regional Housing and Urban Development 
Office, Latin America, USAID/RHUDO/Guatemala, Guatemala City, 
Guatemala, Unit 3323, APO AA 34024, Telefax No.: 502/2-320-663, 
Telephone No.: 502/2-320-603
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. 20523-1822, 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. $7.0 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 rate, and variable 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 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 the 
Borrower's right to convert to fixed. The rate should be adjusted 
weekly.
    (5) Prepayment:
    (a) Offers should include an option for prepayment and mention 
prepayment premiums, if any.
    (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: 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 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. Michael J. 
Lippe, Director, Office of Environment and Urban Programs, U.S. Agency 
for International Development, Room 409, SA-18, Washington, DC 20523-
1822, Fax Nos: 703/875-4384 or 875-4639, Telephone: 703/875-4300.

    Dated: June 28, 1995.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 95-16361 Filed 6-30-95; 8:45 am]
BILLING CODE 6116-01-M