Complete results of MEKKAM-6 #114 offering

/IRBIS, Dec.20, 99/ - On December 20 the Ministry of finance of Kazakhstan with the National Bank held the 114th auction for offering MEKKAM-6 (182 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: Type of the securities МЕККАМ-6 МЕККАМ-6 NSIN KZ46L2206A02 KZ46L1306A03 KASE trade code MKM006.114 MKM006.113 IRBIS registration number 114/6 113/6 Par value, tenge 100.00 100.00 Issuance date Dec.20,1999 Dec.14,1999 Circulation start date Dec.23,1999 Dec.14,1999 Maturity date June 22,2000 June 13,2000 Days in circulation 182 182 Number of Primary dealers 8 (- 1) Demand, mln tenge 3,461.4 (+ 2,468.9) Weighted average yield ondemand, % APR 16.64 (- 0.80) Planned volume, mln tenge 500.0 ( 0) Actual volume, mln tenge 3,378.7 (+ 2,747.8) Cut-off price, % of par value 92.37 (+ 0.01) Weighted average price,% of par value 92.37 ( 0) Maximum yield, % APR 16.52 (- 0.02) Weighted average yield, % APR 16.52 ( 0) Effective weighted average yield,% APR 17.20 ( 0) The Ministry of finance says no applications were submitted by non- residents. This offering can be called unique even for the fact that the volume of created demand and satisfied applications were the record high in whole history of MEKKAM-6 existence on Kazakhstani market. It is even more remarkable considering less favorable investment climate than that observed, let's say, in March 1997. In his brief comment on auction results an employee of the Ministry of finance pointed out obligations of the Primary dealers before the emitter to buy a minimum number of SS during the quarter did not affect the formation of the demand, since these obligations have already been fulfilled by each dealer. The emitter's success, in hid opinion, is due to "good work" of respective departments of the Ministry of finance. IRBIS specialists can neither prove nor deny such point of view, but do not exclude big number of papers could have been bought by some governmental structure. Devaluation expectations of the market participants, who work in private companies, are not so low to create such a soft and great demand for half year bonds in current situation. As it can be seen from the table, emitter's tactics remain unshakable: the Ministry of finance works towards the maximum possible volume of funds while keeping the price of its debt unchanged.