Complete results of MEKKAM-6 #151 offering

/IRBIS, June 22, 00/ - Today the Ministry of Finance (MOF) and National Bank of Kazakhstan (NBK) held 151st auction for MEKKAM-6 offering (182 days). Announced volume of the issue is determined by the issuer at KZT400 mln. Size of satisfaction of non-competitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar auction: Type of the securities MEKKAM-6 MEKKAM-6 NSIN KZ46L2212A04 KZ46L1512A03 KASE trade code MKM006.151 MKM006.150 IRBIS registration number 151/6 150/6 Par value, KZT 100.00 100.00 Issuance date June 22, 2000 June 16, 2000 Circulation start date June 23, 2000 June 16, 2000 Maturity date Dec. 22, 2000 Dec. 15, 2000 Days in circulation 182 182 Number of Primary dealers 10 (- 3) Demand, mln KZT 493.5 (- 1,264.1) WA yield on demand, % APR 13.97 (+ 0.73) Planned volume, mln KZT 300.0 ( 0) Actual volume, mln KZT 151.9 (- 934.6) Cut-off price, % of par value 93.86 (+ 0.01) Weighted average price, % of par value 93.86 (+ 0.01) Maximum yield, % APR 13.08 (- 0.03) Weighted average yield, % APR 13.08 (- 0.03) Effective weighted average yield, % APR 13.51 (- 0.03) The Ministry of Finance (MOF) says no applications were submitted by non- residents. The issue conducted today was marked by the pressure investors put on the emitter in terms of demand decline and increasing yields that were estimated according to all bids. This pressure have not been seen on the market for a long time. According to the IRBIS experts, this behaviour was rather caused by limited tenge liquidity due to small volume of SS redemption at Thursday and Friday, than by low yields of MEKKAM-6. Nevertheless, the MOF completely ignored the pressure and continued to decrease yields, as it did not experience any troubles with budget financing. The intended pre-scheduled redemption of seven MEKKAM emissions on the amount of KZT4,198.4 mln proved this fact. The refusal to redeem these SS resulted in huge amount of money MOF has at its disposal to easily service current internal debt. That is why, the MEKKAM emitter will not compromise with market participants over the debt servicing cost.