/IRBIS, April 28, 03/ - Today the Ministry of Finance (MOF) and the National Bank of Kazakhstan (NBK) held the 173rd auction for MEKKAM-6 offering (182 days). Size of satisfaction for noncompetitive applications is 30% of specified amount.

Following are complete offering results, issue parameters and comparison with previous comparable issue.

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Type of the securities        MEKKAM-6     MEKKAM-6
NSIN                          KZK1KM061733 KZK1KM061717
KASE trade code               MKM006.173   MKM006.171
IRBIS registration number     173/6        171/6
Par value, KZT                100.00       100.00
Issuance date (auction)       Apr 28, 03   Mar 4, 02
Payment date                  Apr 28, 03   Mar 5, 02
Circulation start date        Apr 28, 03   Mar 4, 02
Maturity date                 Oct 28, 03   Sep 3, 02
Days in circulation           182          182
Planned volume, mln KZT       500.0        (- 200.0)
Number of Primary dealers     12           (+ 6)
Demand, mln KZT               7,015.3      (+ 6,518.0)
WA yield on demand, % APR     6.18         (- 3.09)
Actual volume, mln KZT        959.2        (+ 657.3)
Cut-off price, % of par value 97.55        (+ 0.23)
WA price, % of par value      97.55        (+ 0.23)
Maximum yield, % APR          5.04         (- 0.48)
Weighted average yield, % APR 5.04         (- 0.48)
Effective WA yield, % APR     5.10         (- 0.50)
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According to the National Bank, no bids were received from non-residents. MEKKAM-6 offering of 171st issue, comparison with parameters of which is given in the table, is a previous effective offering of discount bonds of the Ministry of Finance.

Results of the conducted offering are the evidence of the fact that even the most pessimistic forecasts of market's participants concerning yield of МЕККАМ of the new issue were full of optimism. Bonds' yield looks exotic on the background of current inflation, which is 7.1% in annual expression (according to results of March). The issuer has proved again that its securities are issued for the purpose of financing the budget's deficit, but not for supporting the stock market.

Though, low yield of МЕККАМ -is the result of high demand from outside of investors. There was something that Ministry of finance could cut off. It's not excluded that minimal compulsory demands of Primary dealers on securities issue worked at that auction. It's difficult to imagine that pension funds or banks bought bonds, which had such low yield, by their own free will.

[2003-04-28]