Complete results of MEKKAM-6 #139 offering

/IRBIS, Apr.25, 00/ - Today the Ministry of finance of Kazakhstan with the National Bank held the 139th 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 issue: Type of the securities MEKKAM-6 MEKKAM-6 NSIN KZ46L2610A02 KZ46L2010A08 KASE trade code MKM006.139 MKM006.138 IRBIS registration number 139/6 138/6 Par value, tenge 100.00 100.00 Issuance date Apr.25,2000 Apr.21,2000 Circulation start date Apr.27,2000 Apr.21,2000 Maturity date Oct.26,2000 Oct.20,2000 Days in circulation 182 182 Number of Primary dealers 10 (+ 1) Demand, mln KZT 1,219.3 (+ 694.8) WA yield on demand, % APR 16.90 (- 0.18) Planned volume, mln KZT 500.0 ( 0) Actual volume, mln KZT 767.8 (+ 516.7) Cut-off price, % of par value 92.26 (+ 0.02) Weighted average price, % of par value 92.27 (+ 0.03) Maximum yield, % APR 16.78 (- 0.05) Weighted average yield, % APR 16.76 (- 0.07) Effective weighted average yield, % APR 17.46 (- 0.08) The Ministry of finance says no applications were submitted by non- residents. Based on the results of the placement the investors are affected by a significant firming of tenge against the dollar, which is observed on the market during the last two weeks, notwithstanding the weakness of the trend. The latest statements of the authorities, regarding the devaluation rate of tenge that may differ much in summer from currently achieved rate, had a certain impact. Dollar loses its investment attractiveness, and financial structures are reorienting themselves to other financial instruments. Compared to previous placement demand for MEKKAM-6 doubled, while the prices in submitted applications did rose slightly. Such behaviors of the investors allowed the Ministry of finance not only to increase the borrowing amount, but also to lower the yield of the bonds that remained unchanged for more than two months. The conjuncture of the sector is changing. However, it is early to come to any conclusions. Repayment volume of SS is not big this week. And it may cause the demand to be more tougher at the next auction for MEKKAM-6.