Complete results of MEOKAM-24 #8 offering

/IRBIS, June 6, 00/ - Today the Ministry of Finance and National Bank of Kazakhstan held the 8th auction for offering MEOKAM-24 (728 days). Announced volume of the issue is determined by the issuer at KZT300 mln. Size of satisfaction of incompetitive applications is 50% of specified amount. The last time MEOKAM-24 was issued on April 20, 1998. The issue was completely converted into AVMEKAM on April 9, 1999. Type of the securities MEOKAM-24 NSIN KZ52L0606A29 KASE trade code MOM024.008 IRBIS registration number 8/24 Par value, KZT 1,000.00 Issuance date June 6, 2000 Payment date (till 11:00AM Almaty time) June 8, 2000 Circulation start date June 8, 2000 Maturity date June 6, 2002 Days in circulation 728 Coupon payment dates Dec.7, 00 June 7, 01 Dec.6, 01 June 6, 02 Number of participants - Primary dealers 5 Demand, mln KZT 188.9 Max fixed yield on demand, % APR 25.00 Planned volume, mln KZT 300.0 Actual volume, mln KZT 17.9 Stated fixed rate, % APR 16.30 Quite forgotten MEOKAM were introduced to the market again. At the offering the issuer demonstrated his desire to lower the debt servicing cost as much as possible, which is incident to him lately. The yields of previously issued such papers varied from 14.50% APR (Nov.3, 97) to 20.99% APR (June 30, 97). Borrowing amount varied from KZT20.0 mln (Jan.26, 98) to KZT375.0 mln (Nov.3, 97). This auction is characterized by the smallest amount of satisfied bids on MEOKAM, as well as by the smallest demand. However, based on stated fixed rate, it is not the most expensive two-year borrowing of the Ministry of finance on domestic market. It is worth to note, that MEOKAM with the closest yield were offered in early 1998, when the situation in Kazakhstan was mostly similar to current situation. Despite its low demand and low amount of borrowed funds, the auction is certainly another small victory of the Ministry of finance in the context of the programs being implemented. Psychological factor of the appearance of mid- term SS, denominated in tenge, should have a positive impact on the investors, though it is hard to expect a great demand with existing level of yield.