Brief characteristic of the first Astana (Kazakhstan) municipal loan

/IRBIS, Dec.23, 99/ - As was informed earlier, an auction on primary placement of the bonds of the Astana local executive body will be held on December 27, 1999 on the Kazakhstan stock exchange (KASE). The Astana executive body is also the Board of administration of the Astana Special Economic Zone (SEZ) of Kazakhstan. Volume of the issue is 150 million tenges. According to the documents granted by the emitter to KASE, the means received from the bonds placement, will be directed to on financing of the investment project "VIP gorodok", which is a part of the city's "Program of hypothecate crediting of the housing construction". The Program is developed by the Astana SEZ Board of administration with allowance for the city's current condition of housing construction. The program considers main ways of the housing construction in Astana - till 2000 and later. It considers the ways of the financial resources attraction, and also the main directions of the program realization. According to the agreement with the SEZ Board of administration, which distributes the means for the program performance, the agent of the Program performance is JSC "Astana Finance" (Astana). The program appendices show calculations of an economic efficiency within the next 10 years concerning the whole program as well as the project " VIP gorodok" project. The Program is targeted to growth of construction, increase of the orders in building industry and its branches, and, hence, to the further Astana development. According to the Program, 18,426,000 US dollars will be received by the republican and local budgets within 10 years, that will allow to improve a situation in the city's social sphere. According to the Program the housing build within the framework of commercial construction is the liability of the bonded debt. Attracted money will be used on financing of the strictly defined project in the Program. The cash flow and calculation of net indicated means are also included in the Program. According to the decree of the Government of Kazakhstan "About drawing by the Astana local executive body" the control and monitoring of obtaining, redemption and service of the loan is assigned to the Ministry of Finance of Kazakhstan, liability of the targeted loan performance is assigned to the Chairman of the SEZ Board of administration - Astana Akim. The full text of the Program in the near future will be published on the web site of KASE (http: // kase.kazecon.kz). As far as it is known to the IRBIS agency, results of the tender for determination of the loan financial adviser will be published tomorrow. The adviser should grant to KASE the project investment memorandum. This document also will be accessible to the potential investors and the public. Since December 10, 1997 Astana has became the capital of Republic of Kazakhstan. The present name has been received by the city in 1998. Till 1961 the city's name was Akmolinsk, from 1961 till 1992 - Tselinograd, since 1992 till 1998 - Akmola. From 1939 till 1965 the city was the center of Akmola oblast, from 1960 till 1965 - Thelinny Krai administrative center.