Housing Guaranty Program; Notice of Investment Opportunity

[Federal Register Volume 61, Number 181 (Tuesday, September 17, 1996)]
[Notices]
[Pages 48968-48969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23864]


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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 Republic of Indonesia 
(``Borrower'') as part of USAID's development assistance program. The 
proceeds of this loan will be used to facilitate the delivery of urban 
environmental infrastructure for the benefit of low-income families in 
Indonesia. At this time, the Government of Indonesia has authorized 
USAID to request proposals from eligible lenders for loans under this 
program of $25 Million U.S. Dollars (US$25,000,000). 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 Indonesia

    Project No: 497-HG-002--Amount: US$25,000,000.
    Housing Guaranty Loan Nos.: 497-HG-008 B01, 497-HG-009 A01.
    1. Attention: Mr. Darsjah, Director General of Budget, Ministry of 
Finance, Jalan Lapangan, Banten Timur No. 2, Jakarta, Indonesia.
    Telex No.: 45799 DJMLNIA or
    Telefax No.: 011-(62-21)-365859 or 374530 (preferred 
communication).
    Telephone Nos.: 011-(62-21)-3458289, 372758 or 3842234 or 3848294.
    2. Attention: Mr. Paul Sutopo, Bank of Indonesia, Jalan M.H. 
Tharmin No. 2, Jakarta, Indonesia.
    Telex No.: 44200 BISIR IA or 46611 BISIR IA.
    Telefax No.: 011-(62-21)-3452892 (preferred communication).
    Telephone No.: 011-(62-21)-367972.
    3. Attention: Mr. Ibrahim Zarkasi, Bank of Indonesia, One World 
Financial Center, 200 Liberty Street, 6th Floor, New York, N.Y. 10281.
    Telefax No.: 212/945-1316 (preferred communication).
    Telephone Nos.: 212/945-1310 or 1311.
    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 representatives by Tuesday, October 1, 1996, 12:00 noon 
Eastern Daylight Savings 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. William Gelman, Director, Regional Housing and Urban Development 
Office, USAID/Jakarta, Box 4, APO AP 96520, c/o American Embassy, 
Jakarta, Indonesia, (Street address: J1 Medan Merdeka Selatan No. 5, 
Jakarta, Indonesia).

    Telex No.: 44218 AMEMB IA.
    Telefax No.: 011-(62-21)-380-6694 and 385-8560 (preferred 
communication).
    Telephone No.: 011-(62-21)-344-2211.
    Address: 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.: 703/875-4384 or 875-4639 (preferred communciation).
    Telephone Nos.: 703-875-4300 or 875-4510.
    For your information the Borrower is currently considering the 
following terms:
    (1) Amount: U.S. $25 million.
    (2) Term: 30 years.
    (3) Grace Period: Ten years grace on repayment of principal. 
(During grace period, semi-annual 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, 
specifically the 6.0% U.S. Treasury Bond due February 15, 2026.

[[Page 48969]]

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) 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, 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. All fees should be clearly 
specified in the offer.
    (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: (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, 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: September 12, 1996.
Michael G. Kitay,
Assistant General Counsel, Bureau for Global Programs, Field Support 
and Research, U.S. Agency for International Development.
[FR Doc. 96-23864 Filed 9-16-96; 8:45 am]
BILLING CODE 6116-01-M