/KASE, October 30, 07/ - Kazakhstan stock exchange (KASE) notifies that today
specialized trades on floatation of government long-term savings treasury
instruments of the Ministry of finance of Kazakhstan (MEUJKAM) have been
held in the trading system of stock exchange. Below are main parameters of the
issue, terms and results of floatation (Almaty time).
PARAMETERS OF ISSUE:
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Type of security: MEUJKAM -120
National identification number: KZKAKY100030
Trade code of KASE: MUJ120_0003
Face value, KZT: 1,000.00
Time basis: 30/360
Floatation date: October 30, 07
Circulation start date: October 30, 07
Last circulation day: October 29, 17
Maturity date: October 30, 17
Circulation term: 10 years (3600 days)
Periodicity of coupon payment: once a year*
Schedule of coupon payments: 1 November 7, 06
2 November 6, 07
3 November 5, 08
4 November 7, 09
5 November 7, 10
6 November 7, 11
7 November 7, 12
8 November 6, 13
9 November 7, 14
10 November 7, 15
Time basis 30/360
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FLOATATION TERMS:
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Announced volume, KZT m.: 14,000.0
Subject of trade: fixed coupon rate
Special terms on the subject of trade must be more than zero
Rate of acceptance of market bids, %: 70
Applications submitting method: closed
Applications acceptance time: 09:00 - 11:00 a.m.
Applications confirmation period: 09:00 - 11:30 a.m. (Т+0)
Cutting off: until 3:00 p.m. (Т+0)
Payment time: until 3:00 p.m. (Т+0)
Bids satisfying method: at cut-off price
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DEMAND PARAMETERS:
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Number of participants - primary dealers: 9
Number of submitted bids (total / confirmed): 36 / 33
including limited: 34 / 31
including market bids: 2 / 2
Volume of confirmed bids, KZT m.: 21,910.0
including limited: 21,150.0
including market bids: 760.0
Demand to offer, %: 156.5
Fixed coupon rate on confirmed bids, % APR:
minimum: 0.50
maximum: 5.00
weighted average: 3.26
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FLOATATION RESULTS:
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Cut-off rate (fixed coupon rate, % APR) 1.00
Volume of satisfied bids, KZT m.: 2,010.0
Volume of floatation, % of planned one: 14.4
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According to the data of Central depositary of securities JSC (Almaty), all deals
on floatation of MEUJKAM -120 of the third issue have been executed by the
moment of calculation end by the results of trades.
MEUJKAM are government bonds, which are floated among Kazakhstan
accumulative pension funds. Within the half of circulation term MEUJKAM may
circulate only among this category of investors. Afterwards they are freely
circulating on the market.
Indexation of money invested into MEUJKAM is made by calculating the indexed
coupon received by adding the fixed coupon, which is determined during
floatation, to inflation rate for the past coupon period.
Based on the monthly indexes of consumer price, published by the Statistics
Agency of the republic of Kazakhstan, the current inflation rate over the last
full 12 months (since October 1 of 2006 to October 1 of 2007) totaled 111.3397. It
means that, at present, the forecasted yield to maturity of the offered bonds is
estimated at the level of 12.34% APR when interpolating the given coupon rate on
the entire circulation term.
Detailed information about MEUJKAM is given in Rules of issue, floatation,
servicing and maturity of government treasury instruments of Kazakhstan
(
http://www.kase.kz/mix/newgko.pdf), which were approved by the resolution of
Kazakhstan Government dated September 8 of 2004 #941 and took effect since
January 1 of 2005.
Floated MEUJKAM are automatically admitted to circulation on KASE's
secondary market under the symbol given in the table. Bonds must be quoted in
KASE's trade system in "dirty" prices.
[2007-10-30]