Complete results of MEKKAM-3 #259 offering

/IRBIS, Jan.11, 00/ - On January 11 the Ministry of finance of Kazakhstan with the National Bank held the 259th 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 KZ43L1304A08 KZ43L0704A06 KASE trade code MKM003.259 MKM003.258 IRBIS registration number 259/3 258/3 Par value, tenge 100.00 100.00 Issuance date Jan.11,00 Jan.7,00 Circulation start date Jan.13,00 Jan.7,00 Maturity date Apr.13,00 Apr.7,00 Days in circulation 91 91 Number of Primary dealers 9 (+ 4) Demand, mln tenge 1,433.6 (+ 90.3) Weighted average yield ondemand, % APR 15.89 (+ 0.05) Planned volume, mln tenge 500.0 ( 0) Actual volume, mln tenge 1,394.8 (+ 196.6) Cut-off price, % of par value 96.12 (- 0.12) Weighted average price,% of par value 96.22 (- 0.02) Maximum yield, % APR 16.15 (+ 0.52) Weighted average yield, % APR 15.71 (+ 0.09) Effective weighted average yield,% APR 16.66 (+ 0.10) The Ministry of finance says no applications were submitted by non- residents. Today the Ministry of finance had a low cut-off, apparently demonstrating its interest in maximizing the funds being raised. Almost all applications were satisfied. Probably, it was the inability of placing half year debts that the emitter had to catch up with MEKKAM-3. Investors' demand was stable and not so "tough". But, however, yield, calculated by all submitted applications, keeps rising - dealers are playing down to lower the cost of the debt. It is still early to talk about any forecasts in this sector of the market. After the new year holidays the market conjuncture changed, it became more driven by "market forces", since the Ministry of finance has no hope for the purchase of big volumes of MEKKAM by the National Bank. The market is looking for a level beneficial to both the emitter and the investors.