Complete results of notes-56 #384 offering

/IRBIS, March 30, 00/ - Today the National Bank of Kazakhstan held the 384th auction for offering notes with KZT100 par value and 56 day circulation term. Announced volume of the issue is set by the emitter at 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-56 Notes-56 NSIN KZ98K2605A07 KZ98K2104A03 KASE trade code NTK384.056 NTK372.056 IRBIS registration number 384/N 372/N Par value, tenge 100.00 100.00 Issuance date March 30,2000 Feb. 24,2000 Circulation start date March 31,2000 Feb. 25,2000 Maturity date May 26,2000 Apr.21,2000 Days in circulation 56 56 Number of Primary dealers 10 (- 2) Demand, mln KZT 368.5 (- 514.5) WA yield on demand, % APR 13.67 (- 0.27) Planned volume, mln KZT 300.0 (- 200.0) Actual volume, mln KZT 158.8 (- 154.2) Cut-off price, % of par value 98.02 ( 0) Weighted average price, % of par value 98.02 ( 0) Maximum yield, % APR 13.13 ( 0) Weighted average yield, % APR 13.13 ( 0) Effective weighted average yield, % APR 13.87 ( 0) As expected, at the auction demand was not great even with additional offering. Banks preferred to work with the dollars ignoring the shortage of free funds. Devaluation expectations grow under the influence of negative (for Kazakhstan) news regarding oil price decrease and growth in tariffs of natural monopolists. In IRBIS analysts' opinion, it is these factors that make the banks to ignore the instruments non-indexed by devaluation more and more. Under this circumstance reduction of refinancing rate by the National bank down to 16% on March 21 seems optimistic. It is clear why under current situation the head bank of the country did not give in to dealers on yields. Based on weighted average price of all submitted applications, there were no attempts to put a pressure on the emitter from the investors. The market knows that now the National Bank will hardly go for an increase in yields. Therefore, low demand was caused both by unsatisfactory yield of the instrument and by the deficit of funds (all free money was invested by the banks in dollars in the main session of KASE), as well as by MEKAVM-6 offerings held today, which seem to be more attractive than low yield notes. Thus, it can be said the National Bank's attempt to clean up KZT2.4 bln, which is expected to inflow into correspondent accounts of the banks after SS are repaid, was partially successful.