Complete results of MEKKAM-3 #262 offering

/IRBIS, Apr.10, 00/ - On April 10 the Ministry of finance of Kazakhstan with the National Bank held the 262nd auction for offering MEKKAM-3 (91 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-3 MEKKAM-3 NSIN KZ43L1307A05 KZ43L1606A03 KASE trade code MKM003.262 MKM003.261 IRBIS registration number 262/3 261/3 Par value, tenge 100.00 100.00 Issuance date Apr.10,2000 March 16,2000 Circulation start date Apr.12,2000 March 17,2000 Maturity date July 13,2000 June 16,2000 Days in circulation 91 91 Number of Primary dealers 10 (- 2) Demand, mln KZT 1,064.9 (+ 294.2) WA yield on demand, % APR 15.37 (- 0.17) Planned volume, mln KZT 500.0 (+ 200.0) Actual volume, mln KZT 556.2 (+ 152.5) Cut-off price, % of par value 96.37 (+ 0.01) Weighted average price, % of par value 96.37 (+ 0.01) Maximum yield, % APR 15.07 (- 0.04) Weighted average yield, % APR 15.07 (- 0.04) Effective weighted average yield, % APR 15.94 (- 0.05) The Ministry of finance says no applications were submitted by non- residents. The first auction of the week was active. As dealers note, the liquidity in tenge is excessive on the market. Under such conditions the Ministry of finance found its way on time and offered the market compromise papers. The compromise was that the dealers would prefer MEKAVM now. But the issuer is not interested in issuing them and offers MEKKAM-6 and MEKKAM- 12 that are in low demand. MEKKAM-3, due to its short circulation term, is the compromise both the issuer and the investors would go for. The results of the auction confirmed this. The results also showed that, the first of all, the issuer is willing to work towards decreasing the borrowing rate. The latter is needed not only to decrease the servicing cost of the debt. By using relatively quiet situation with the budget, financial powers are trying to lower the investment attractiveness of purely market, not related to real sector of the economy, financial instruments in order to shift free money of the banks into the real sector.