KAZAKHSTAN ISSUED FIVE-YEARS EURONOTES TOTALING $200 MILLION UNDER +825 BP

/IRBIS, Sep.27, 99/ - Just now it got about that Kazakhstan issued Euronotes of the third emission on the sum of $200 millions. It was given in the message of Lead Managers of the loan - Deutsche Bank and ABN AMRO Bank. By the message executed in the REUTERS standard format, the Euronotes are placed for five years (Oct.18, 1999 - Oct.18, 2004) with yield of +825 basic points and are denominated in US dollars. Taking into account, that synchronous US T-Bills have annual yield about 5.80%, the yield of the Kazakhstan Euronotes appears very high - about 14.05% p.a. The amount of coupon payments is not informed. Euronotes of this issue, as well as their predecessors, will trade on Exchanges of Luxembourg and Amsterdam. They have a credit rating B1 from Moody's Investor Services and B+ from Standard and Poor's Rating Services. The circulation of Euronotes will be carried out under Regulation S and Rule 144A. Opinion of the experts interrogated by the IRBIS, is unequivocal: the yield is very high, that allows to speak about placement under offered conditions. It is the second attempt of Kazakhstan to place Euronotes. The first attempt of placement of the five years bonds in Euro with spread of 750-800 basic points in relation to yield of the Euro countries bonds (10.25 - 10.50% p.a.) was undertaken in July 1999. The attempt was unsuccessful, as fall of bonds of the Latin America countries at that time did not promote trust to the developing markets. The Lead Managers accepted the decision to return to placement in September. The IRBIS agency reminds, that on October 02 Kazakhstan should pay the next coupon on Euronotes of the second issue (XS0080679961, 8.375% p.a.) on the sum of $350 million, on December 20 - to redeem Euronotes of the first issue (XS0072056863) on the sum of $200 million and to pay on them coupon compensation at the annual rate of 9.25%. As Nurlan Balgimbaev the Prime minister of Kazakhstan declared on the Saturday's meeting of Parliament that before the end of the year Kazakhstan should pay about $500 million on external drawing. And the problems with opening of the new IMF credits are obvious. In opinion of the analysts, placement of the next issue of Euronotes under so unprofitable conditions is connected just with these circumstances.