[Federal Register Volume 60, Number 175 (Monday, September 11, 1995)]
[Notices]
[Pages 47181-47182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22557]



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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 loans to the Infrastructure Leasing & 
Financial Services Limited, Bombay, Indian, (``Borrower'') as part of 
USAID's development assistant program. The proceeds of these loans will 
be used to finance a prototype program designed to demonstrate the 
feasibility of private sector provision of infrastructure in India for 
the benefit of low income families. At this time, the Borrower plans to 
request bids from eligible lenders for a loan of $25.0 Million U.S. 
Dollars (US$25,000,000). 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:

Infrastructure Leasing & Financial Service Limited, India

Project No.: 386-HG-IV
Housing Guaranty Loan Nos.: 386-HG-015-AO1, 386-HG-016-AO1
Amount: US$25,000,000

    Attention:

(1) Mr. Hari Shankaran, Vice President, Infrastructure Leasing & 
Financial Services Ltd., India Habitat Centre, 4th Floor, East Court, 
Zone VI, Lodhi Road, New Delhi 110 003, India; Telefax No.: 011-(91-11) 
463-6651 (preferred communication); Telephone Nos.: 011-(91-11) 463-
6637, 463-6641, 463-6642
(2) Mr. Ravi Parthasarathy, Managing Director, Infrastructure Leasing 
and Financial Services Ltd., Mahindra Towers, 4th Floor, Road No. 13, 
Worli, Bombay 400 018; Telefax No.: 011-(91-22) 493-0080 (preferred 
communication); Telephone Nos.: 011-(91-22) 493-5190, 496-4353, 493-
5127

    Interested lenders should contact the Borrower and USAID 
immediately upon receipt of this Notice and indicate their interest in 
bidding on the proposed financing. Those lenders expressing interest 
will be included in a short list maintained by USAID for the purpose of 
facilitating an accelerated auction procedure as and when the actual 
bid date is set. It is anticipated that the bidding will occur sometime 
in mid to late September, 1995. As soon as the bid date is established, 
and in lieu of another public notice, a formal Notice of 

[[Page 47182]]
Investment Opportunity will be provided directly to those firms 
appearing on the short list. The time between the actual receipt of the 
Notice of Investment Opportunity announcing the bid date, and the due 
date for bids, may be as little as 24 hours.
    Lenders seeking to be included in the short list should submit 
their name, address and telefax number to: Mr. Charles Billand, 
Assistant Director, Mr. Peter Pirnie, Financial Advisor, 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 Nos.: 703/875-4384 or 875-4639 (preferred 
communication); Telephone Nos.: 703/875-4300 or 875-4510.

    The Borrower is currently considering the following terms:
    (1) Amount: U.S. $25.0 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 6\7/8\% U.S. Treasury Bond due August 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, or the yield (B.E.Y.) of the 26 week U.S. 
Treasury Bill, 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.
    (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/or 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) Closing Date: As early as practicable with best efforts to 
close in 30 days, 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.
    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: September 6, 1995.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 95-22557 Filed 9-8-95; 8:45 am]
BILLING CODE 6116-01-M