Results of placement of Note-21 #323

/IRBIS, 05.08.99/ - On August 05 The Ministry of Finance of Kazakhstan together with the National Bank has conducted the 323-rd auction for placement of notes of 100 tenge nominal and 91 days circulation. Announced volume of issue is 200 million tenge. Size of the satisfaction of the non- competitive applications - 60% from established volume. Auction was carried out with additional placement, which was realised during the day. The complete results are listed below. Type of securities Note-21 Note-21 NSIN KZ8LK2708990 KZ8LK2008995 KASE's trade code НОТЫ 323 НОТЫ 322 IRBIS' registration number 323/N 322/N Nominal value, tenge 100.00 100.00 Date of issue 05.08.99 30.07.99 Beginning of the circulation 06.08.99 30.07.99 Date of redemption 27.08.99 20.08.99 Term of the circulation 21 days 21 days Demand, million tenge 2,813.7 ( +1,381.6) Yield on demand weighted average, % p.a. 14.51 ( -0.88) Scheduled volume, million tenge 200.0 ( 0) Actual volume, million tenge 2,223.1 ( +1,408.4) The cutting off price, tenge 99.18 ( +0.01) The weighted average price, tenge 99.9 ( +0.02) Maximum yield, % p.a. 14.3 ( -0.18) Weighted average yield, % p.a. 14.15 ( -0.35) Weighted average yield, effective, % p.a. 15.14 ( -0.40) The conjuncture of this sector remains constant. The only surprise is the high rate of placement, which was carried out by the National Bank at so great demand. In the secondary market the demand for the short-time tenge securities exceeds the offer many times. It is obvious, that attraction of money is the priority task of the National Bank, and that the task of reduction of debt service cost is removed on the second plan. The great demand is stipulated by relatively significant volume of state securities redemption. The market participants prefer to reinvest. Dollar, as the financial tool, still to be out of participants' interest. There are no factors capable to change a conjuncture of this sector. The situation with placement of Note-28 on Friday, most likely, will be similar: high and "soft" in the price relation demand. The market accepted the game rules established by the emitter, and conjuncture may change only after reversal of the tenge rate evolution.