[Federal Register Volume 62, Number 22 (Monday, February 3, 1997)]
[Notices]
[Pages 5036-5037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2525]


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

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 (the 
``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 $5.0 Million U.S. Dollars (US$5,000,000). The name and address of 
the Borrower's representative to be contacted by interested U.S. 
lenders or investment bankers (each, a ``Lender''), the amount of the 
loan and project number are indicated below:

Banco General S.A., Panama

Project No.: 525-HG-13;
Housing Guaranty Loan No.: 525-HG-014 A03;
Amount: US$5,000,000;
Attention: Mr. Francisco Sierra, Vice President--Treasury Banco General 
S.A., Panama, (street address: Calle Aquilino de la Guardia y Ave. 5ta 
B Sur, Panama City, Panama);
Telex No.: 2733 General PG;
Telefax No.: 507/265-0215 (preferred communication);
Telephone Nos.: 507/265-0231 or 507/265-0234.

    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, February 18, 1997, 12:00 noon 
Eastern 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. Joseph M. Carroll, Chief, Office of Democratic Governance, 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. Lawrence Doc Odle, Regional Housing and Urban Development Office, 
Central America USAID/RHUDO/Guatemala, Guatemala City, Guatemala, Unit 
3323, APO AA 34024;
Telefax No.: 502/332-0663;
Telephone No.: 502/332-0603;
Address: Mr. Peter Pirnie, Sr. Financial Advisor, 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.: 703/875-4639 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. $5.0 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\1/2\% U.S. Treasury Bond due November 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 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 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, 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: Approximately 30 days from selection of investor, 
if possible, but not to exceed 60 days from date of selection of 
Lender.
    Selection of a Lender 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: (a) 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,

[[Page 5037]]

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: January 27, 1997.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 97-2525 Filed 1-31-97; 8:45 am]
BILLING CODE 6116-01-M