Complete results of MEKKAM-3 #253 offering

/IRBIS, Dec.07, 99/ - On December 07 the Ministry of finance of Kazakhstan with the National Bank held the 253rd 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 comparison with previous similar tranche: Type of the securities МЕККАМ-3 МЕККАМ-3 NSIN KZ43L0903A05 KZ43L0303A01 KASE trade code MKM003.253 MKM003.252 IRBIS registration number 253/3 252/3 Par value, tenge 100.00 100.00 Issuance date Dec.7,1999 Nov.2,1999 Circulation start date Dec.9,1999 Dec.3,1999 Maturity date March 3,2000 March 3,2000 Days in circulation 91 91 Number of Primary dealers 8 No data Demand, mln tenge 1,278.9 (- 1,262.3) Weighted average yield ondemand, % APR 16.10 (+ 0.34) Planned volume, mln tenge 500.0 ( 0) Actual volume, mln tenge 1,036.8 (- 793.1) Cut-off price, % of par value 96.23 (+ 0.02) Weighted average price,% of par value 96.24 ( 0) Maximum yield, % APR 15.67 (- 0.09) Weighted average yield, % APR 15.63 ( 0) Effective weighted average yield,% APR 16.62 ( 0) The Ministry of finance says no applications were submitted by non- residents. The sector is gradually changing. Despite approaching end of the quarter, when Primary dealers are to give an account to the Ministry of Finance for the volume of mandatory purchase of state securities at auctions, demand is falling, and prices in investors' applications are going up. The market is perceiving growth of the dollar. Risks, associated with the devaluation, are rising. It should be noted though, the emitter's position seems to be solid so far. In monetary terms, demand is far above planned amount. Considering the large volume of repayment for state securities this week, demand for MEKKAM-3 at the next auction on December 9 is expected to rise. However, the emitter is more likely to prefer the maximum borrowing amount to lowering debt servicing cost.