Complete results of notes-49 #378 offering

/IRBIS, March 14, 00/ - On March 14 the National Bank of Kazakhstan held the 378th auction for offering notes with KZT100 par value. Circulation term is 49 days. Announced volume of the issue is KZT300 mln. Size of satisfaction of incompetitive applications is 60% of specified amount. The auction was held with additional placement which was carried out the same day. Following is the complete offering data and comparison with previous similar auction: Type of the securities Notes-49 Notes-49 NSIN KZ97K0405A04 KZ97K2804A07 KASE trade code NTK378.049 NTK377.049 IRBIS registration number 378/N 377/N Par value, tenge 100.00 100.00 Issuance date March 14,2000 March 10,2000 Circulation start date March 16,2000 March 10,2000 Maturity date May 4,2000 Apr.28,2000 Days in circulation 49 49 Number of participants - Primary dealers 7 (- 7) Demand, mln KZT 296.0 (- 757.3) WA yield on demand, % APR 13.85 (- 6.98) Planned volume, mln KZT 300.0 ( 0) Actual volume, mln KZT 255.0 (- 319.5) Cut-off price, KZT 98.27 ( 0) Weighted average price, KZT 98.27 ( 0) Maximum yield, % APR 13.08 ( 0) Weighted average yield, % APR 13.08 ( 0) Effective weighted average yield, % APR 13.83 ( 0) The conjuncture of financial market is changing somewhat. Despite an obvious attractiveness of this type of SS, investors did not find enough money to create a high demand. Shortage of tenge, caused, on the one hand, by "overheated" currency market (in last three weeks dollar grew very fast and it was bought actively), and on the other hand, by making tax payments by February results (declarations should be submitted by the 15th of the month). Correspondent accounts of the banks seem to be empty in last two days. Rates for the shortest money jumped up to 10/16% APR by the evening, whereas a day ago they were twice lower. It is the second day the banks are selling dollars to restore their short term liquidity. The deficit is local. Therefore, it is not beneficial to attract money at such a high interest to buy SS with current yields. In IRBIS analysts' opinion, the deficit in correspondent accounts of the banks will last up to March 16. That day will be the day when the investors will receive KZT197.7 mln for repayment of SS of the Ministry of finance. And on March 17 the National Bank will add another billion or so. Hence, it can be assumed that demand will not be so large at the next auctions. To service the debt the emitters of SS will have to take everything offered at those auctions. Therefore, yields of the new issues will hardly be much lower. And neither the National Bank, nor the Ministry of finance will raise them now.