/IRBIS, Sergey Yakovlev, June 16, 04/ - Following is the characteristics of
the 5th issue bonds of Kazakhstan Mortgage Company JSC (Almaty), given
in accordance with their admission into category A of the official listing.
Data is shown in accordance with conclusion of KASE's Listing commission and
Prospectus of the fifth issue of mortgage-backed bonds of Kazakhstan
Mortgage Company JSC:
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Type of securities: indexed mortgage bonds
Debt type: secured
Issue and servicing currency: Kazakhstan tenge (KZT)
Indexation character: Indexation of coupon depending on
inflation rate in Kazakhstan
Indexation peculiarities: holder's revenue is protected
against deflation; coupon rate
depends on fixed margin amount
National identification number: KZ2CKY05B216
Issue number in state register: B21
Register maintenance: FONDOVYI SERVIS CJSC
(Almaty)
Date of issue registration: June 15, 04
Par value KZT 1.00
Issue volume in issue currency: 5,000,000,000.00
Issue volume in securities: 5,000,000,000.00
Date of circulation start (issue date): June 1, 04
Circulation term: 4 years and 304 days from
circulation date
Floatation term: during the whole circulation term
Maturity date: April 1, 09
Coupon (interest rate): Floating, adjusted every 1st of
April and 1st of October of
each year
Coupon payment dates: twice each year, on April 1 and
October 1
Time basis in all settlements: 30/360. European method
Register fixation dates for coupon payment: March 30 and September 31
of each year
Register fixation date at maturity: March 31, 09
Underwriters:
lead manager KIB ASSET MANAGEMENT JSC
(Almaty)
co-manager CenterCredit Bank OJSC (Almaty)
Monitoring of the pledge ELTAL-UVEMAN consulting LLP
(Almaty)
Representative of bond holders CenterCredit Bank OJSC (Almaty)
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Date of admittance in trade lists of KASE: June 16, 04
Trade code of KASE: KZIKb5
Date of first trades: To be determined later
Accuracy of price changing in quoting: 4 decimal points
Market-maker at KASE: KIB ASSET MANAGEMENT JSC (Almaty)
Minimal volume of compulsory quotation: 1,800,000 bonds
Credit ratings of the issue: None as of June 16, 04
Credit ratings of the issuer: None as of June 16, 04
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Interest rate
Floating coupon rate on bonds (in %) is calculated in the following way:
annualized inflation index (during the last twelve months) per month, which
precedes the month, in which the rate is set (for the term till October 1,
2004) or its reexamination is made, minus 100 plus fixed margin
If the amount of inflation rate minus 100 is negative, i.e. deflation takes
place, then 0 is used for calculation purposes.
Fixed margin is set by the results of the first deal at primary floatation. In
case if the first deal is concluded during primary floatation at specialized
trades organized by the exchange and bids for bonds purchase are satisfied
at stated margin, the lowest rate determined by the results of specialized
trades is regarded as fixed margin.
The issuer has a right to reset the interest rate twice each calendar year on
April 1 and October 1, in accordance with inflation rate changes reported by
Statistics agency of the Republic of Kazakhstan.
In case the rate is reset while actual coupon is to be paid under coupon's last
revision and before new one comes in force, the coupon is paid and interest
is accrued on the basis of the last coupon revised.
Lower and upper bounds for coupons on bonds are set. Upper bound for the
coupon rate as of date when trades in the securities began is equal to:
annualized inflation rate for May 2004 minus 100, plus fixed margin plus 4.5.
Lower bound for the coupon rate as of date when trades in the securities
began is equal to: annualized inflation rate for May 2004 minus 100, plus
fixed margin minus 4.5.
Beginning from April 1, 2004 coupon rate on bonds is calculated using
following formula: annualized (last twelve months) inflation rate for March
2005 minus 100, plus fixed margin.
Farther, coupon lower and upper bounds are revised on October 1 of each
calendar year, during the period when bonds are outstanding.
Provisions of bonds
Bonds are backed by collateral, consisting of the company's movable
property, which includes (1) claims on mortgage loans to borrowers,
purchased from banks-partners either by buying mortgage certificates
directly or signing a special purpose agreement, which provides for "passing
through" all or only a part of claims to a third party (assignment agreement);
and (2) securities acceptable for refinancing by the National bank of
Kazakhstan.
Collateral is subjected to government registration according to government
regulation. Collateral right arise from date of government registration.
Cancellation of collateral is also subjected to registration. All registration
expenses fall on issuer of bonds.
The pawned property provides with fulfillment of the company's obligations
on bonds redemption and, in case of the company's default, paying of
Representative's expenses, connected with imposing a penalty and sale of
the pawned property.
Agreement is made between the company and bondholders, on behalf and
on the instructions of whom the Representative acts. Bondholders charge
the Representative with obligation to protect their rights as collateral
owners.
Interest rate payment and redemption
Interest is paid on October 1 and April 1 each year. Last payment is made
together with redemption (April 2009).
Register of bondholder possessing the right for repayments is fixed one day
prior to repayment date.
If dates of interest payments or bonds redemption coincide with a day off or
a holiday, payment will be made on the first working day, which follows the
day off or a holiday. Bondholders have no right to demand interest imposing
of other compensation for such the delay in payment. All payments (interest
payment and bonds maturity) are made by the issuer by cashless settlement.
In case of delays over repayments (interest or principal) the issuer is
subjected to 0.1% fee of total repayment sum for each overdue date starting
from day after delay date.
In case of more than 30-day repayment delay bondholders are subjected to
protection according to legislation of the Republic of Kazakhstan. All
payments are made by bank transfer in cashless form.
Purpose of borrowing
The funds raised will be directed on purchase of mortgage loans.
More detailed information on securities, including conclusion of the Listing
committee of the Exchange, will be published at KASE' official web site
at:
http://www.kase.kz/emitters/kzik.asp in the nearest future.
[2004-06-16]