Complete results of MEKAVM-6 #28/6B offering

/IRBIS, Jan.28, 00/ - On January 28 the Ministry of finance of Kazakhstan with the National Bank held the 28th auction for offering MEKAVM-6 (182 days). Announced volume of the issue is determined by the emitter at $4 mln. Size of satisfaction of noncompetitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar issue: Type of the securities МЕКАВМ-6 МЕКАВМ-6 NSIN KZ46L2807A05 KZ46L2306A01 KASE trade code МВМ006.028 МВМ006.027 IRBIS registration number 28/6B 27/6B Par value, tenge 100.00 100.00 Issuance date Dec.28,1999 Dec.24,1999 Circulation start date Dec.28,1999 Dec.24,1999 Maturity date June 28,2000 June 23,2000 Days in circulation 182 182 Number of Primary dealers 8 ( 0) Demand, mln USD 18.8 (- 10.3) Weighted average yield on demand, % APR 9.82 (- 3.22) Planned volume, mln USD 4.0 ( 0) Actual volume, mln USD 18.3 (- 1.3) Cut-off price, % of par value 95.35 ( 0) Weighted average price, % of par value 95.35 ( 0) Maximum yield, % APR 9.75 ( 0) Weighted average yield, % APR 9.75 ( 0) Effective weighted average yield, % APR 9.99 ( 0) Yield is given in currency terms. The Ministry of finance says no applications were submitted by non- residents. The demand parameters look not adequate, taking into account too large prices growth in the applications. It looks as if there are very big applications from the part of one or two participants. It is possible that there is a connection between today's advance redemption by the Ministry of Finance of the MEKKAM-6 112-th issue and the auction parameters, which indicates the debt re-structuring. MEKAVM-6 offered by the Ministry of Finance are hardly popular today in the market. The devaluation indexed securities with the similar term of circulation are offered there extremely seldom practically without demand and with the yield of 9.70 to 14.10% p.a. Large volume of low yield transactions with the long-term MEKAVM on the secondary market testifies to exclusiveness of the contractors (such volumes are too much for the main part of PAMC or banks). At the same time volume of transaction at the yield about 14% p.a. is very close to the market average and as a rule does not exceed first millions tenge.