Complete results of notes-42 #382 offering

/IRBIS, March 24, 00/ - Today the National Bank of Kazakhstan held the 382nd auction for offering notes with KZT100 par value. Circulation term is 42 days. Announced volume of the issue is KZT300 mln. Size of satisfaction of noncompetitive applications is 60% of specified amount. The auction was held with additional placement conducted the same day. Following is the complete offering data and comparison with previous similar issue: Type of the securities Notes-42 Notes-42 NSIN KZ96K0505A04 KZ96K2704A09 KASE trade code NTK382.042 NTK379.042 IRBIS registration number 382/N 379/N Par value, tenge 100.00 100.00 Issuance date March 24,2000 March 15,2000 Circulation start date March 24,2000 March 16,2000 Maturity date May 5,2000 Apr.27,2000 Days in circulation 42 42 Number of Primary dealers 11 ( 0) Demand, mln KZT 833.0 (+ 334.6) WA yield on demand, % APR 13.11 (- 0.45) Planned volume, mln KZT 300.0 ( 0) Actual volume, mln KZT 667.6 (+ 421.1) Cut-off price, KZT 98.53 ( 0) Weighted average price, KZT 98.53 ( 0) Maximum yield, % APR 12.93 ( 0) Weighted average yield, % APR 12.93 ( 0) Effective weighted average yield, % APR 13.69 ( 0) Today the Ministry of finance and the National Bank succeeded at sweeping away the amount of money (KZT837.0 mln) to be received by the investors for the notes in the afternoon. Almost all the amount was reinvested into SS. As expected, the preference was given to notes. In IRBIS analysts' opinion, this fact means that short term devaluation expectations are decreasing. It seems as if the dealers are prudent about the attractiveness of the dollar as a financial instrument in near term. Currency market is volatile, exchange rate trend is not stable, and in such circumstances notes, notwithstanding their low yields, seem to be preferable. Relatively high demand at the auction is interesting with the fact that it was created under the condition where the banks still lack for free funds. Free money were not reserved by the dealers to stretch currency positions of their banks on Monday, but they were invested into SS. It had affected the conjuncture of the market for U.S. dollar in the second half of the day. USD quotations did not grew. In its turn, the National Bank can not work effectively towards decreasing the yields of the notes. The banks still have less free money, and the emitter seems to satisfy itself with the amount of money offered by the investors without changing the yield. Probably, such disposition will hold on the market until overnight rates fall to 2-3% APR. The National Bank finished the thirteenth week of the year 2000 (March 20 - 26) on primary market for SS with following results. With actual repayment volume of KZT837.0 mln the emitter raised KZT667.6 mln at one auction. Balance of net-borrowing of the National Bank equaled negative KZT169.4 mln for this week.