[Federal Register Volume 61, Number 225 (Wednesday, November 20, 1996)]
[Notices]
[Pages 59108-59109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29700]


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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 $10 Million U.S. Dollars (US$10,000,000). 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 No: 664-HG-V
    Housing Guaranty Loan No.: 664-HG-013 A01.
    Amount: US$10,000,000.

    Attention: Mr. Moncef CHAFFAR, 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.: 216-1-340-588, 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, December 3, 1996, 12:00 noon 
Eastern Daylight Standard 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. Scott Dobberstein 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 USAID TN, Telefax No.: 216-1-782-464 
(preferred communication), Telephone No.: 216-1-781-308 or 784-375

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.: 703/875-4639 or 875-4384 (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. $10 million.
    (2) Term: 30 years.
    (3) Grace Period: Ten years grace on repayment of principal. 
(During grace

[[Page 59109]]

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 and variable rates 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 6.75% U.S. Treasury Bond due August 15, 2026. Such 
rate is to be set at the time of acceptance. Interest to be payable 
semi-annually in arrears on a 30/360 day basis.
    (b) Variable Interest Rate: To be based on the six-month British 
Bankers Association LIBOR, preferably with terms relating to Borrower's 
right to prepay, refinance and/or convert the loan to a fixed rate of 
interest. The variable rate should be adjusted weekly. Interest to be 
payable semi-annually in arrears on a 365/365 actual days basis.
    (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 
at par. 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.
    (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: Ms. Viviann 
Gary, 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: November 15, 1996.
Carolyn Karr,
Acting Assistant General Counsel, Bureau for Global Programs, Field 
Support and Research, U.S. Agency for International Development.
[FR Doc. 96-29700 Filed 11-19-96; 8:45 am]
BILLING CODE 6116-01-M