Complete results of notes-49 #371 offering

/IRBIS, Feb.17, 00/ - On February 17 the National Bank held the 371st auction for offering notes with KZT100 par value and 49 day circulation term. Announced volume of the issue is determined by the emitter at KZT300 mln. Size of satisfaction of incompetitive applications is 60% of specified amount. Following is the complete offering data and comparison with previous similar auction: Type of the securities Notes-49 Notes-49 NSIN KZ97K0704A02 KZ97K3003A04 KASE trade code NTK371.049 NTK369.049 IRBIS registration number 371/N 369/N Par value, tenge 100.00 100.00 Issuance date Feb.17,2000 Feb.9,2000 Circulation start date Feb.18,2000 Feb.10,2000 Maturity date Apr.7,2000 March 30,2000 Days in circulation 49 49 Demand, mln tenge 702.2 (- 1,586.8) Weighted average yield on demand, %APR 13.54 (+ 0.15) Planned volume, mln tenge 300.0 ( 0) Actual volume, mln tenge 455.8 (- 1,177.2) Cut-off price, % of par value 98.25 (+ 0.02) Weighted average price, % of par value 98.25 (+ 0.01) Maximum yield, % APR 13.23 ( 0) Weighted average yield, % APR 13.31 (- 0.08) Effective weighted average yield, %APR 14.01 (- 0.09) Despite the expectations, demand was not so high at the auction. It was more likely to be caused by the refusal of the emitter from additional placement. Today the Ministry of finance is also offering SS (MEKKAM-3 of 260th issue). Therefore, the refusal of the National Bank from such usual for the investors additional placement can be explained by its unwillingness to compete with the Ministry of finance. A symbolic decrease in the yield becomes obvious, when a relatively small demand and the attempt of the dealers to lower the cost of the debt is taken into account. This decrease means that the National Bank is not aiming at clearing up correspondent accounts of the banks, but it began to lower the yield again. It seems the emitter of the notes will keep this tactics in the future.