[Federal Register Volume 61, Number 86 (Thursday, May 2, 1996)]
[Notices]
[Pages 19637-19638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11008]



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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 Government of Zimbabwe 
(``Borrower'') as part of USAID's development assistance program. The 
proceeds of these loans will be used for mortgage finance and to 
finance shelter-related infrastructure for low-income families in 
Zimbabwe. At this time, the Government of Zimbabwe has authorized USAID 
to request proposals from eligible lenders for a loan under this 
program of Fifteen Million U.S. Dollars (US $15,000,000). 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:

Government of Zimbabwe

Project No.: 613-HG-004--Amount: US $15,000,000
Housing Guaranty Loan No.: 613-HG-005 A01
Attention: Mr. C.T. Kuwaza, Senior Secretary for Finance Ministry of 
Finance (Street address: Munhumutapa Building, Samora Machel Avenue, 
Private Bag 7705 Causeway, Harare, Zimbabwe). Telex No.: 22141 ZIMGOV
Telefax: 011-263-4-792-750 (preferred communication)
Telephone Nos.: 011-263-4-794-571 through 9

    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, May 14, 1996, 12:00 noon Eastern 
Daylight 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 Enders, Mission Housing Officer, Regional Housing and Urban 
Development Office, USAID/Harare, 1 Pascoe Avenue, Harare, Zimbabwe. 
Telefax No.: 011-263-4-720-722 (preferred communication) Telephone No.: 
011-263-4-720-757
    and
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.: 703/875-4639 or 875-4384 (preferred communication) 
Telephone Nos.: 703/875-4300 or 875-4510.

    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: U.S. $15 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 both fixed and variable rate 
loans 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 
yield, specifically the 6% U.S. Treasury Bond due February 15, 2026. 
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.
    (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. 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.
    (7) Closing Date: As early as practicable, but not to exceed 60 
days from date of selection 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

[[Page 19638]]

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: Ms. Viviann 
Gary, 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: April 26, 1996.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 96-11008 Filed 5-1-96; 8:45 am]
BILLING CODE 6116-01-M