[Federal Register Volume 60, Number 163 (Wednesday, August 23, 1995)]
[Notices]
[Pages 43815-43816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20951]



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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 Banco Centroamericano de 
Integracion Economica (CABEI) (``Borrower'') as part of USAID's 
development assistance program. The proceeds of this loan will be used 
for a municipal infrastructure finance program to finance urban 
environmental infrastructure for the 

[[Page 43816]]
benefit of low-income families in Central American countries. At this 
time, CABEI has authorized USAID to request proposals from eligible 
lenders for a loan under this program of $7 Million U.S. Dollars 
(US$7,000,000). The name and address of the Borrower's representatives 
to be contacted by interested U.S. lenders or investment bankers, the 
amount of the loan and project number are indicated below:

Banco Centroamericano De Integracion Economica

    Project No: 596-HG-010--Amount: US$7,000,000.
    Housing Guaranty Loan No.: 596-HG-007 A01, 596-HG-010 A01.
    1. Attention: Mr. Jaime Chavez-Almendares, Financial Manager, Banco 
Centroamericano de Integracion Economica (CABEI), P.O. Box 772, 
Tegucigalpa, D.C., Honduras.
    Telefax Nos.: 011/(504) 37-0188 or 011/(504) 37-9173 (preferred 
communication).
    Telephone Nos.: 011/(504) 37-3119 or 011/(504) 38-4901.
    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 limit their bids to the 
Borrower's representatives by Wednesday, September 6, 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. Ronald Carlson, Director, Regional Housing and Urban 
Development Office, Central America, USAID/RHUDO/Guatemala, Unit 3323, 
APO AA 34024. (Street address: 1 Calle 7-66, Zona 9, 01009, Plaza Uno 
Bldg., Guatemala City, Guatemala, C.A.)
    Telefax Nos.: 011/(502) 2-320-663 or 011/(502) 2-311-151 (preferred 
communication).
    Telephone Nos.: 011/(502) 2-320-603 or 011/(502) 2-320-202.

    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, 
DC 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 million.
(2) Term: Alternatives of 15, 20, 25 and 30 years.
(3) Grace Period: Five years grace on repayment of principal. (During 
grace period, semi-annual payments of interest only. Thereafter, semi-
annual level payments of principal and interest over the remaining life 
of the loan).
(4) Interest Rate: Quotes for fixed rate, only.
    Fixed Interest Rate: For bid comparison purposes, rates are to be 
quoted based on a spread over an index, specifically the 6\7/8\% U.S. 
Treasury Bond due August 15, 2025. The actual rate is to be set at the 
time of acceptance.
(5) Prepayment:
    (a) Offers should include options for prepayment and mention 
prepayment premiums, if any. Options for prepayment should be on the 
following basis:
    (i) For a 15 year term, callable after five years on any semi-
annual payment date.
    (ii) For 20, 25, 30 year terms, callable after 10 years on any 
semi-annual payment date.
(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, 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. 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 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: August 18, 1995.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 95-20951 Filed 8-22-95; 8:45 am]
BILLING CODE 6116-01-M