Complete results of MEKKAM-3 #263 offering
27.04.00 00:00
/IRBIS, Apr.27, 00/ - Today the Ministry of finance of Kazakhstan (MOF) with
the National Bank (NBK) held the 263th auction for offering MEKKAM-3 (91
days). Announced volume of the issue - 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-3 MEKKAM-3
NSIN KZ43L2807A08 KZ43L1307A05
KASE trade code MKM003.263 MKM003.262
IRBIS registration number 263/3 262/3
Par value, tenge 100.00 100.00
Issuance date Apr.27,2000 Apr.10,2000
Circulation start date Apr.28,2000 Apr.12,2000
Maturity date Jul.28,2000 Jul.13,2000
Days in circulation 91 91
Number of Primary dealers 13 (+ 3)
Demand, mln KZT 1.231.7 (+ 166.8)
WA yield on demand, % APR 15.07 (- 0.30)
Planned volume, mln KZT 500.0 ( 0)
Actual volume, mln KZT 688.7 (+ 132.5)
Cut-off price, % of par value 96.45 (+ 0.08)
Weighted average price, % of par value 96.45 (+ 0.08)
Maximum yield, % APR 14.72 (- 0.35)
Weighted average yield, % APR 14.72 (- 0.34)
Effective weighted average yield, % APR 15.56 (- 0.38)
The Ministry of finance says no applications were submitted by non-
residents.
The auction has once again confirmed that, presently, MEKKAM-3 is the
most attractive instrument among other SS of MOF (exception: long
devaluation indexed securities). The emitter fully considers that high demand
lowers yield and leads to positive value of net borrowing.
Taking into account possible cyclical (summer) revaluation of tenge and low
rates of the NBK notes, MEKKAM-3 could be the most popular securities
among market participants. However, as experience shows, such shine look
will eventually lead to decline of the yields. At present situation, the
emitters could continue to operate with negative balance of net borrowing
using, at the same time, every chance to lower costs of debt servicing.