Complete results of MEKKAM-3 #263 offering

/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.