Complete results of placing of MEKAVM-9 #2/93B

/IRBIS, Dec.28, 99/ - December 28 the Ministry of Finance of Kazakhstan and the National Bank have conducted 2nd auction on placement of MEKAVM-9 (273 days). Announced volume of issue is determined by the emitter at 7 millions of US dollars. Satisfaction size of the incompetitive applications - 50 % from established volume. The complete data and comparison with the previous comparable transh are given below. Type of securities МЕКАВМ-9 МЕКАВМ-9 NSIN KZ49L2609A02 KZ49L2408A05 Trade code at KASE МВМ009.002 МВМ009.001 IRBIS' registration number 02/9B 01/9B Nominal value, USD 100.00 100.00 Date of issue Dec.28, 1999 Nov.23, 1999 Beginning of circulation Dec.28, 1999 Nov.23, 1999 Date of redemption Sep.26, 2000 Aug.24, 2000 Term of circulation 273 days 273 days Number of the Primary dealers 7 (+ 2) Demand, million USD 3.6 (- 4.3) Yield on demand weighted av., % p.a. 10.95 (+ 0.05) Scheduled volume, million USD 7.0 (+ 5.0) Actual volume, million USD 3.2 (- 2.7) The cutting off price, USD 93.09 (- 0.13) The weighted average price, USD 93.10 (- 0.12) Maximum yield, % p.a. 9.91 (+ 0.21) Weighted average yield., % p.a. 9.88 (+ 0.18) Weighted average yield., eff. % p.a. 9.88 (+ 0.18) The yield is expressed in a currency form. According to the information of The Ministry of Finance, no applications were received from non-residents for the auction. According to the order established by the emitter the auction is the last one for the Ministry of finance in the current year. However, taking into account experience of the previous years, IRBIS do not exclude extraordinary placements on December 29. The Ministry of Finance employees also do not deny such capability, though for now there is no any information about additional issues in 1999. Analysis of the Ministry of Finance State Securities placements allow to assume that in the new year the MEKAVM and MEKKAM primary market can change essentially. They can be caused by the circumstance that, in opinion of the IRBIS experts, in December significant volume of the Ministry of Finance securities has been purchased by the National Bank. It has made the demand parameters non indicative and to some degree useless for valuation of an actual businesses condition in the given market segment. Next year the National Bank will not need to buy so many MEKAVM and MEKKAM (as a matter of fact, this year it has been made for the Ministry of Finance only). Hence, the investors will have more opportunities to speculate for a fall of the securities prices that can cause in January growth of the yield of the Ministry of Finance securities.