[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-10080] [[Page Unknown]] [Federal Register: April 26, 1994] VOL. 59, NO. 80 Tuesday, April 26, 1994 AGENCY FOR INTERNATIONAL DEVELOPMENT Housing Guaranty Program; Investment Opportunity The 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 representatives 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--US$15,000,000. Housing Guaranty Loan No: 613-HG-004 A01. Attention: Mrs. Diana Z. Guti, Secretary for Finance, Ministry of Finance, (Street address: Munhumutapa Building, Samora Machel Avenue, Private Bag 7705, Causeway, Harare, Zimbabwe), Telex No.: 22141 ZIMGOV, Telephone No.: 011-263-4-794-571 through 9 Telefax No.: 011-263-4-792- 750 (preferred communication). 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 10, 1994, at 12 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, 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. David Grossman/Mr. Peter Pirnie, Agency for International Development, Office of Housing and Urban Programs, G/DG/H, room 401, SA-2, Washington, DC 20523-0214, Telex No.: 892703 AID WSA, Telefax No.: 202-663-2552 (preferred communication), Telephone No.: 202-663- 2530/2547. For your information the Borrower is currently considering the following terms: (1) Amount: US$15 million. (2) Term: 30 years. (3) Grace Period: Ten years on the repayment of principal (during grace period, semi-annual payments of interest only). 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 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\1/4\% U.S. Treasury Bond due August 15, 2023. Such 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. (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, and 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 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 the 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. Peter Kimm, Director, Office of Housing and Urban Programs, Agency for International Development, room 401, SA-2, Washington, DC 20523-0214, Telephone: 202/663-2530. Dated: April 24, 1994. Michael G. Kitay, Assistant General Counsel, Bureau for Global Programs, Field Support and Research, Agency for International Development. [FR Doc. 94-10080 Filed 4-25-94; 8:45 am] BILLING CODE 6116-01-M