OVERVIEW: On December 23, 2008 due to the absence on KASE of the market-maker was discontinued circulation of all GS and IFO bonds
/KASE, December 25, 08/ - As informed previously, by the decision of Kazakhstan Stock Exchange (KASE) Board from December 23, 2008 is discontinued circulation on KASE of the following securities:
- international bonds US045167BH53 (ADB_U040912; $500.0 m.; September 4, 02 - September 4, 12, the semi-annual coupon 4.500 % APR) of Asian Development Bank (ADB);
- international bonds US4581X0AD07 (IADBU200912; $2.0 bn; September 20, 02 - September 20, 12, the semi-annual coupon 4.375 % APR) of Inter- American development Bank (IADB);
- international bonds XS0092711802 (IBRDU251113; $500.0 m.; November 25, 98 - November 25, 13, the semi-annual coupon 5.500 % APR) of International Bank for Reconstruction and Development (IBRD);
- government international bonds XS0088543193 (RU_01_2806; $2,500.0 m.; June 24, 98 - June 24, 28) of the Ministry of Finance of the Russian Federation;
- government bonds XS0114288789 (RU_02_3003; $18,400.0 m.; August 25, 00 - March 31, 30) of the Ministry of Finance of the Russian Federation.
This decision has been made by the Board in compliance with KASE internal documents "Rules of International Financial Organizations Securities Admission to Circulation" and "Rules of Goerign Government Securities Admission to Circulation" due to the absence in securities of the market-maker from November 21, 2008.
Thus, from December 23, 2008 on KASE was actually discontinued circulation of all securities, representing two exchange trading sectors: "Foreign Government Securities" (FGS) and "International Financial Organizations Securities".
The international financial organizations securities market exchange sector (IFO) emerged in 2001 as a result of actions of Kazakhstan pension market subjects on investing their assets to foreign issuers securities. That time pension funds started looking for ways of direct entry to international markets and in 2001 to acquire IFO bonds they utilized services of Kazakhstan dealers. Later the situation has changed. The growth of professionalism in pensions assets managers and building up relations with foreign partners led to the situation that IFO bonds on KASE stopped being purchased.
Below are parameters of all IFO bonds ever admitted to circulation on KASE and the statistics on trades results.
Table 1. Basic parameters of IFO bonds, admitted to circulation on KASE in 2001 - 2008
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IBRD
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Issuer -------------- ------------- ------------- ------------
XS0092711802 US459056QC41 US459056PP62 DE0001282705
IBRDU251113 IBRDU060302 IBRDU170303 IBRDD120405
ISIN USD USD USD DEM
Trading code 500,000,000 2,000,000 4,000,000 3,000,000
Issue currency 11.25.98 03.06.00 03.17.98 04.12.95
Issue volume 15 years 2 years 5 years 10 years
Circulation start 11. 25.13 03.06.02 03.17.03 04.12.05
Circulation period 5.500 % г. 6.750 % г. 5.625 % г. 7.125 % г.
Maturity date 25.11 annually 09.06 & 03.06 09.17 & 03.17 April 12
Interest rate annually annually annually
Coupon payment -------------- ------------- ------------- ------------
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Time base 30/360
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Table 1 continued
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ASDB IFC IADB
US045167BH53 XS0110024550 US4581X0AD07
Issuer ADB_U040912 IFC_U060405 IADBU200912
ISIN USD USD USD
Trading code 500,000,000 1,000,000 2,000,000
Issue currency 09.04.02 04.06.00 09.20.02
Issue volume 10 years 5 years 10 years
Circulation start 09.04.12 04.06.05 09.20.12
Circulation period 4.500 % г. 7.125 % г. 4.375 % г.
Maturity date 03.04 & 09.04 10.06 & 04.06 03.20 & 09.20
Interest rate annually annually annually
Coupon payment ------------- ------------- -------------
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Time base 30/360
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Table 2. Parameters of IFO exchange bonds market in 2001 - 2008
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Deals volume
----------------
Year Code Number of ------ --------
deals m. KZT th. USD
----- ----------- --------- ------ --------
2001 IBRDD120405 1 39.58 267.44
IBRDU060302 19 519.25 3,545.51
IBRDU170303 13 186.91 1,284.31
IFC_U060405 8 117.19 805.29
2004 IBRDD120405 3 37.63 173.69
2005 IBRDD120405 2 2.24 17.20
----- ----------- --------- ------ --------
Total 46 902.80 6,193.43
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GS exchange market sector started actual functioning on KASE from August 11, 2004, when based on application of TuranAlem Securities and the letter of Central Depository by the decision of KASE Board were admitted to circulation external loan bonds of the Russian Federation of two issues: Russia-2028 (XS0088543193) and Russia-2030" (XS0114288789). KASE did not receive other application for inclusion of FGS into lists.
Table 3. Basic parameters of FGS, admitted to circulation on KASE in 2004 - 2008
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government external loan bonds
Government of the Russian Federation
Security type ---------------------------------------------------------
Issuer -------------------------------- -----------------------
Russia - 2028 Russia - 2030
XS0088543193 XS0114288789
Colloquial name
ISIN (Euroclear, US78307AAE38 US78307ACZ49
Clearstream) RU_01_2806 RU_02_3003
ISIN (DTC) USD USD
Trading code 2.5 bn. 18.4 bn.
Issue currency June 24, 1998 March 31, 2000
Issue volume 30 years 29.6 years
Circulation start June 24, 28, put-option March 31, 30
Circulation period June 28, 08
Maturity date at face value
Semi-annual fixed Semi-annual, multi-step
12.750% APR 2.25 - 7.50% APR
Coupon type June 24 and December 24 annually March 31 and September
Interest rate annually
Coupon payment -------------------------------- -----------------------
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Time base 30/360
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On KASE the FGS market was mot liquid. In above mentioned bonds were executed single deals, the market nature of which was doubtful.
Table 4. Parameters of FGS exchange market
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Deals volume
----------------
Year Security Number of ------ --------
code deals m. KZT th. USD
----- ---------- --------- ------ --------
2005 RU_01_2806 2 49.21 367.00
RU_02_3003 2 29.36 218.95
2006 RU_01_2806 2 23.96 181.59
RU_02_3003 3 17.48 133.00
2007 RU_01_2806 1 21.43 173.61
RU_02_3003 1 11.16 90.40
----- ---------- --------- ------ --------
Total 11 152.60 1,164.56
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[2008-12-25]