Complete results of MEKKAM-6 #130 offering

/IRBIS, March 20, 00/ - On March 20 the Ministry of Finance of Kazakhstan with the National Bank held the 130th auction for offering MEKKAM-6 (182 days). Announced volume of the issue is determined by the emitter at KZT500 mln. 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 MEKKAM-6 MEKKAM-6 NSIN KZ46L2109A00 KZ46L1409A09 KASE trade code MKM006.130 MKM006.128 IRBIS registration number 130/6 128/6 Par value, tenge 100.00 100.00 Issuance date March 20,2000 March 13,2000 Circulation start date March 23,2000 March 16,2000 Maturity date Sep. 21, 2000 Sep. 14, 2000 Days in circulation 182 182 Number of Primary dealers 8 (- 3) Demand, mln KZT 331.6 (- 54.9) WA yield on demand, % APR 19.83 (- 2.63) Planned volume, mln KZT 500.0 ( 0) Actual volume, mln KZT 118.5 (- 66.6) Cut-off price, % of par value 92.24 ( 0) Weighted average price, % of par value 92.24 ( 0) Maximum yield, % APR 16.83 ( 0) Weighted average yield, % APR 16.83 ( 0) Effective weighted average yield, % APR 17.53 ( 0) The Ministry of finance says no applications were submitted by non- residents. Demand remains low and at do not exceed announced volume of the issue. The reasons are: MEKKAM-6 unattractiveness in a current situation (low yield at high devaluation expectations) and the market's shortage in free tenge. February's tax payments are replaced by 1999 profit tax payments. Rates of the shortest interbank tenge deposits go upwards today. Some banks have been sold USD on KASE for the short-term liquidity support. In these conditions realization of the issue is a large success of the emitter. The Ministry has demonstrated its perseverance in the question of the debt service. Volume of drawing has been defined by the cutting off price, which has ensured the constant yield of MEKKAM-6. The emitter tries to wait through unfavorable period and is guided by the summer stabilization of exchange market, which will allow to sell MEKKAM-6 more effectively.