[Federal Register Volume 59, Number 228 (Tuesday, November 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29430]


[[Page Unknown]]

[Federal Register: November 29, 1994]


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INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

Agency for International Development

 

Housing Guaranty Program; Investment Opportunity

    The U.S. Agency for International Development (USAID) has 
authorized the guaranty of a loan to the Municipal Finance Company, 
J.S.C. (``Borrower''), Prague, Czech Republic, as part of USAID's 
development assistance program. The proceeds of this loan will be used 
to enhance the municipal infrastructure finance system for shelter-
related infrastructure for the benefit of low-income families in the 
Czech Republic. At this time, the Borrower has authorized USAID to 
request proposals from eligible lenders for a loan under this program 
of $20 Million U.S. Dollars (US$20,000,000). The name and address of 
the Borrower's representatives to be contacted by interested U.S. 
lenders or investment bankers, and the amount of the loan and project 
number are indicated below:

Czech Republic

Project No.: 192-HG-001--$20,000,000
Housing Guaranty Loan No.: 192-HG-001 A01/192-HG-002 A01

    (1) Attn: Mr. Ladislav Macka, The Municipal Finance Co., J.S.C., 
Mailing address: Jeruzalemska 4, 111 21 Praha 1, Czech Republic, 
Telefax No. (preferred communication): 42-2-260-273, Telephone No.: 42-
2-267-511/42-2-2423-0734.
    (2) Attn: Mr. Pavel Pelant, The Ministry of Finance, Mailing 
address: Letenska 15, 118 10 Praha 1, Czech Republic, Telefax No. 
(preferred communication): 42-2-530-655, Telephone No.: 42-2-2454-2101.
    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 all of 
the Borrower's representatives by Tuesday, December 13, 1994, 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. Fred Van Antwerp, Housing and Urban Development Office, RHO USAID/
Prague, c/o American Embassy Prague, Czech Republic, (Street address: 
118 01 Praha, Trziste 15, Czech Republic), Telefax No. (preferred 
communication): 42-2-2451-0240 or 0341, Telephone No.: 42-2-2451-0758 
or 0847
Mr. David Grossman/Mr. Peter Pirnie, Address: U.S. Agency for 
International Development, Office of Environment and Urban Programs, G/
ENV/UP, Room 409, SA-18, 1601 North Kent Street, Rosslyn, VA 22209, 
Telex No.: 892703 AID WSA, Telefax No. (preferred communication): (703) 
875-4384 or (202) 663-2772, Telephone No.: (703) 875-4300 or (202) 663-
2773.

    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: U.S. $20 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 (a) fixed, (b) variable, (c) 
variable rates with cap, and (d) variable rates with collar, are 
requested.
    (a) Fixed Interest Rate: If fates are to be quoted based on a 
spread over an index, the lender should use as its index a long bond, 
specifically the yield on the 7\1/2\% U.S. Treasury Bond due November 
15, 2024. Such rate is to be set at the time of acceptance.
    (b) Variable Interest Rate: To be based on the six-months British 
Bankers Association LIBOR, preferably with terms relating to Borrower's 
right to convert to fixed. The rate should be adjusted weekly.
    (c) Variable Interest Rate With ``Cap'': Offers should include a 
maximum (cap) rate ranging from 8% to 10% per annum. Interest rates are 
to be based on the six-months British Bankers Association LIBOR. The 
rate should be adjusted weekly.
    (d) Variable Interest Rate with ``Collar'': Offers should include a 
collar. Interest rates are to be based on the six-months British 
Bankers Association LIBOR. The rate should be adjusted weekly.
    (5) Prepayment:
    (a) Offers should include options for prepayment and mention 
prepayment premiums, if any, and specify the earliest date the option 
can be exercised without penalty.
    (b) Only in an extraordinary event to assure compliance with 
statutes binding USAID, USAID reserves the right to accelerate the loan 
(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 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. All fees should be 
clearly specified in the offer.
    (7) Closing Date: Not to exceed to 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 loan 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 loan 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 M. 
Kimm, Director, Office of Environment and Urban Programs, U.S. Agency 
for International Development, Room 409, SA-18, 1601 N. Kent Street, 
Rosslyn, VA 22209, Fax Nos.: (703) 875-4384 or (202) 663-2772, 
Telephone: (703) 875-4300 or (202) 663-2773.

    Dated: November 23, 1994.
Michael G. Kitay,
Assistant General Counsel, Bureau of Global Programs, Field Support and 
Research U.S. Agency for International Development.
[FR Doc. 94-29430 Filed 11-28-94; 8:45 am]
BILLING CODE 6116-01-M