Complete results of notes-49 #392 offering

/IRBIS, April 26, 00/ - Today the National Bank of Kazakhstan held the 392th auction for offering notes with KZT100 par value and 49 day circulation term. Announced volume of the issue is set by the emitter at KZT200 mln. Size of satisfaction of non-competitive 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-49 Notes-49 NSIN KZ97K1506A00 KZ97K0206A05 KASE trade code NTK392.049 NTK389.049 IRBIS registration number 392/N 389/N Par value, tenge 100.00 100.00 Issuance date April 26,2000 April 13,2000 Circulation start date April 27,2000 April 14,2000 Maturity date June 15,2000 June 02,2000 Days in circulation 49 49 Number of Primary agents 9 (- 3) Demand, mln KZT 376.6 (- 1,466.7) WA yield on demand, % APR 13.15 (- 0.08) Planned volume, mln KZT 200.0 (- 100.0) Actual volume, mln KZT 293.8 (- 895.5) Cut-off price, % of par value 98.29 (+ 0.01) Weighted average price, % of par value 98.29 (+ 0.01) Maximum yield, % APR 12.92 (- 0.08) Weighted average yield, % APR 12.92 (- 0.08) Effective weighted average yield, % APR 13.66 (- 0.09) The demand was rather moderate. However, it did not prevent the National Bank from lowering the yield of notes and fulfil its floatation plan. It should be noted that the decrease of demand reflected in the table is a particular case for these bonds, as the volume of applications on the previous auction had been unordinary high for the recent time. Today demand has returned on its previous level. At the same time, investors' purchasing ability on the current week in the SS sector has substantially decreased. It is indicative on both markets: primary and secondary. Banks shifted from purchase and sale operations to the repo, which volume is sufficiently higher than simple trade operations. Accordingly to the opinion of IRBIS analysts, such shifts are related with insignificant redemption of SS at the current week. This factor decreases possibilities of maneuvering on the market and, of course, affected the parameters of auction demand. Remarkably, but there is no any pressure on the emitter from investors in spite of temporary shortage of funds. The strategy of the National bank and the Ministry of Finance is clear and its rejection is hardly seen.