Complete results of MEKKAM-3 #257 offering

/IRBIS, Jan.6, 00/ - On January 4 the Ministry of finance of Kazakhstan with the National Bank held the 257th 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 KZ43L0604A07 KZ43L2303A07 KASE trade code MKM003.257 MKM003.256 IRBIS registration number 257/3 256/3 Par value, tenge 100.00 100.00 Issuance date Jan.4,00 Dec.21,99 Circulation start date Jan.6,00 Dec.23,99 Maturity date Apr.6,00 March 23,00 Days in circulation 91 91 Number of Primary dealers 5 (- 5) Demand, mln tenge 1,164.8 (- 820.6) Weighted average yield on demand, % APR 15.84 (+ 0.17) Planned volume, mln tenge 500.0 ( 0) Actual volume, mln tenge 958.2 (- 691.1) Cut-off price, % of par value 96.24 ( 0) Weighted average price, % of par value 96.24 ( 0) Maximum yield, % APR 15.63 ( 0) 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 results of the first successful placement of the year can not be considered indicative, since most of the participants of the market refrain themselves from submitting applications. Because KCIC will make interbank payments only on January 6, some financial institutions of Kazakhstan were closed on the day the auction was held. However, demand was quite high at the placement, and prices in applications were not so low. Despite a loss of the National Bank's support in new year, whose active participation in last auctions of the year as a buyer of MEKKAM was obvious, this placement can be considered successful in all respects. IRBIS analysts do not exclude active gambling of the investors in near term to lower the auction price of MEKKAM due to the reasons given in previous paragraph. Moreover, there is no repayment of SS in this week and purchasing power of the investors can be low on Thursday and Friday. Therefore, the Ministry of finance may encounter some problems while offering MEKKAM-6 on Thursday.