Complete results of MEKKAM-3 #251 offering

/IRBIS, Nov.30, 99/ - On November 30 the Ministry of finance of Kazakhstan with the National Bank held the 251st auction for offering MEKKAM-3 (91 days). Announced volume of the issue is determined by the emitter at 500 mln tenge. Size of satisfaction of noncompetitive applications is 50% of specified amount. Following is the complete offering data and a comparison with previous similar tranche: Type of the securities МЕККАМ-3 МЕККАМ-3 NSIN KZ43L2902A02 KZ43L2502A06 KASE trade code MKM003.251 MKM003.250 IRBIS registration number 251/3 250/3 Par value, tenge 100.00 100.00 Issuance date Nov. 30, 1999 Nov. 25, 1999 Circulation start date Dec. 01, 1999 Nov. 26, 1999 Maturity date Feb. 29, 2000 Feb. 02, 2000 Days in circulation 91 91 Number of Primary dealers 11 (+ 1) Demand, mln tenge 1,065.0 (- 1,490.7) Weighted average yield ondemand, % APR 15.71 (- 0.65) Planned volume, mln tenge 500.0 ( 0) Actual volume, mln tenge 757.1 (- 844.6) Cut-off price, % of par value 96.22 (- 0.01) Weighted average price,% of par value 96.24 ( 0) Maximum yield, % APR 15.71 (+ 0.04) Weighted average yield, % APR 15.63 ( 0) Effective weighted average yield,% APR 16.57 ( 0) The Ministry of finance says no applications were submitted by non- residents. Decrease in demand can be explained by several reasons. Offering of previous issue of MEKKAM-3 coincided with the repayment, that is, with the payments made on Friday, when big funds from repayment of prior issues were available to investors. Such favorable conditions were absent now. Events on currency market do not indicate further strengthening of tenge vividly, which could disturb the investors. As the dealers say, the market for the dollar found its "bottom", and the sellers are successfully trying to boost the market for two days in a row. At the very end of the month pension funds traditionally lack free funds due to a schedule of money inflows to their accounts. Banks are in similar positions due to the end of the month. These reasons, in IRBIS analysts opinion, could have a certain impact on shrinking the demand twofold at offering of MEKKAM-3. However, growth in weighted average price in applications of the investors is worth mentioning. It shows that investors are less liquid rather than they are unwilling to buy MEKKAM-3. As expected, Ministry of Finance did not change its tactics by keeping the yield at the same level. In current situation, such a behavior of the emitter is more likely to happen at the next offering of MEKKAM-3.