Complete results of MEKKAM-6 #122 offering

/IRBIS, Feb.1, 00/ - On February 1 the Ministry of finance of Kazakhstan with the National Bank held the 122nd 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 and comparison with previous similar tranche: Type of the securities МЕККАМ-6 МЕККАМ-6 NSIN KZ46L0308A03 KZ46L2707A06 KASE trade code MKM006.122 MKM006.121 IRBIS registration number 122/6 121/6 Par value, tenge 100.00 100.00 Issuance date Feb.1,2000 Jan.25,2000 Circulation start date Feb.3,2000 Jan.27,2000 Maturity date Aug.3,2000 July 27,2000 Days in circulation 182 182 Number of Primary dealers 7 (- 3) Demand, mln tenge 606.8 (- 371.2) Weighted average yield on demand, % APR 17.63 (+ 0.14) Planned volume, mln tenge 500.0 ( 0) Actual volume, mln tenge 361.2 (- 368.7) Cut-off price, % of par value 92.16 ( 0) Weighted average price, % of par value 92.16 ( 0) Maximum yield, % APR 17.01 ( 0) Weighted average yield, % APR 17.01 ( 0) Effective weighted average yield, % APR 17.74 ( 0) The Ministry of finance says no applications were submitted by non- residents. Based on offering results, demand for SS with more than three month circulation term is gradually decreasing irrespective of denomination currency, and the yield is growing in submitted applications. The secondary market is saturated with the securities, there is no supply shortage. Therefore, the investors can get shorter papers at KASE or on interbank market. There, the yield correlates with the auction rates well, but there are more chances to buy short papers than at auctions. Decrease in demand for MEKKAM-6 can also be explained by notes-28 auction, which will be held on Wednesday and it is more attractive instrument considering uncertain market conjuncture even in the middle of March. Moderateness of the Ministry of finance in raising the funds is likely to be explained by insignificant amount of its current debt servicing cost in this week, which equals only 255.9 mln tenge.