Complete results of MEKAVM-6 #29/6B offering

/IRBIS, March 30, 00/ - On March 30 the Ministry of finance of Kazakhstan with the National Bank held the 29th auction for offering MEKAVM-6 (182 days). Announced volume of the issue is set by the emitter at USD4 mln. Size of satisfaction of noncompetitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar issue: Type of the securities MEKAVM-6 MEKAVM-6 NSIN KZ46L2909A02 KZ46L2807A05 KASE trade code MKM006.029 MKM006.028 IRBIS registration number 29/6B 28/6B Par value, tenge 100.00 100.00 Issuance date March 30,2000 Jan. 28,2000 Circulation start date March 31,2000 Jan. 28,2000 Maturity date Sep.29,2000 July 28,2000 Days in circulation 182 182 Number of Primary dealers 11 (+ 3) Demand, mln USD 13.3 (- 5.4) WA yield on demand, % APR 9.93 (+ 0.11) Planned volume, mln USD 4.0 ( 0) Actual volume, mln USD 11.8 (- 6.6) Cut-off price, USD 95.37 (+ 0.02) Weighted average price, USD 95.37 (+ 0.02) Maximum yield, % APR 9.71 (- 0.04) Weighted average yield, % APR 9.71 (- 0.04) Effective weighted average yield, % APR 9.95 (- 0.05) The yield is given in currency terms. The Ministry of finance says no applications were submitted by non- residents. Unlike the notes, MEKAVM-6 were in great demand today. Dealers were waiting for these papers for long. And some of the banks that were buying dollars actively in the main trades of KASE, after the hopes for growth in the exchange rate of USD did not come true during the trades, sold part of the dollars to invest the money into MEKAVM-6. By using the demand the emitter lowered borrowing rate, but showed its interest in raising more than it planned. Timing was perfect, considering the date and volume of repayments for previously issued papers, and the need to pay out coupon for euronotes. In IRBIS analysts' opinion, the Ministry of finance will continue to issue MEKAVM-6 on the market only in special circumstances, when urgent need for immediate replenishment of the budget exists. The decision of OPEC to raise oil production and the intentions of natural monopolists of Kazakhstan to raise their tariffs caused devaluation expectations to escalate. Therefore, new issues of MEKAVM can be too expensive for the emitter when it comes to repaying them. Hence, it can be assumed that the Ministry of finance is not interested much in issuing currency papers in current situation.