Complete results of placement of MEKKAM-6 #110

/IRBIS, Nov.19, 99/ - On November 19 the Ministry of Finance of Kazakhstan and the National Bank have conducted the 110th auction for placement of MEKKAM-6 (91 days). The emitter determines announced volume of issue at 500 million tenges. Satisfaction size of the incompetitive applications - 50% from the established volume. The complete data and comparison with the previous comparable issue are given below. Type of securities MEKKAM-6 NSIN KZ46L1905A08 Trade code at KASE MKM006.110 IRBIS' registration number 110/6 Nominal value, tenges 100.00 Date of issue Nov.19, 99 Beginning of the circulation Nov.19, 99 Date of redemption May.19, 99 Maturity 182 days Number of the Primary dealers 5 Demand, million tenges 493,9 Yield on demand weig. av., % p.a. 18,29 Scheduled volume, million tenges 500.0 Actual volume, million tenges 404,7 The cutting off price, tenges 92,38 The weighted average price, tenges 92,38 Maximum yield, % p.a. 16,50 Weighted average yield, % p.a. 16,50 Weighted average yield, eff. % p.a. 17,18 According to the information of The Ministry of Finance, no applications were received from non-residents for the auction. First placement of the not indexed semi-annual MEKKAM after an eight- month interruption has passed rather successfully. While it is difficult to estimate, which category of the investors has overpassed the cutting off level. But the fact is: the emitter has managed to satisfy 82% of the applications without the principal compromise on yield. There is rather intense situation in the primary State Securities market. Every participant want badly to deal in the short not indexed securities. But they are not present. The National Bank places the long notes. MEKKAM as the investments object look even more risky. The investors can not believe in a stable tenge absolutely. The dealers speak, that short positions replace now the long ones. It looks as if the same should be made with the State Securities, by selling the dollar denominated obligations and purchasing the short tenge obligations. In the current week the investors have not such capabilities, because instead of the short-time notes they have been obliged to buy MEKKAM-3 on Thursday and MEKKAM-6 on Friday. It is doubtful that MEKKAM-6 look attractive for the banks now. Therefore it is possible to assume active participation of the Halyk Bank in auction. During the last month the financial authority put quite rigid pressure upon the market participants. They do it not by the administrative, but by the market methods. Despite of the participants' traditional skepticism concerning all governmental program, the successes of the authority's success is obvious.