Issue, circulation and repayment terms of the first issue bonds of RGP "Kazakhstan temir joly"

/IRBIS, June 26, 00/ - As it was informed earlier, by the decision of the Exchange council of Kazakhstan stock exchange (KASE), dated June 23, 2000, discounted bonds of the Republican state enterprise "Kazakhstan temir joly" (Astana) were entered into official list of securities of the Exchange under category "A". GENERAL INFORMATION OF THE BOND ISSUE Issue registration date: June 21, 2000 Type of the securities: discounted bonds, indexed by the change in the exchange rate of tenge to U.S. dollar National identification number: KZ2CLALN6A19 Face value, USD: 100.00 Issue volume, USD: 15,000,000.00 Number of bonds: 150,000 The issuer's register is maintained by LLP "Kazregistr" (Almaty), the license #0406200022 of the National securities commission of Kazakhstan issued on August 3, 1999. The issue terms do not contain norms that may discriminate or limit the rights of the owners to transfer (alienate) the securities. OJSC "Bank TuranAlem" became the winner of the tender for offering the services regarding the placement of the bonds on the stock market of Kazakhstan. Later, by the request of the issuer, OJSC "DB SECURITIES (KAZAKHSTAN)" joined in the project. As a loan operator and an underwriter of the first part of the issue is a subsidiary of OJSC "Bank TuranAlem" - LLP "TuranAlem Securities" (Almaty). OFFERING AND REPAYMENT TERMS OF THE BONDS Circulation term of the bonds - 1 year (365 days) from the date they were entered into KASE official list of the securities. Circulation ends after 365 days from the time the bonds were entered into KASE official list of the securities. The payments for the bonds, and their repayment are to be made in tenges at weighted average rate of the KASE, effective on the payment date. The bonds are to be offered in two parts. The first part of the issue for 10 mln U.S. dollars in nominal terms (100 th. bonds) is placed within 33 days from the date they were entered into KASE list of securities under category "A" (June 23, 00) through LLP "TuranAlem Securities". This brokerage-dealing company, who works as an underwriter of the first part of the issue, buys all issue volume of the first part and plans to place them on the secondary market. Apparently, the preference would be given to the KASE, since LLP "TuranAlem Securities" received a status of a specialist (market-maker, who has more strict requirements on mandatory quotations and spreads compared with regular market-maker) of RGP "Kazakhstan temir joly" first issue bonds on June 23, 00. The second part of the issue for 5 mln U.S. dollars in nominal terms (50 th. bonds) is placed within 63 days from the date they were entered into KASE list of securities under category "A", but not earlier than the first part of the issue will be placed completely. As the representative of LLP "TuranAlem Securities" informed IRBIS, no final decision was made on possible placement method of the second tranche. It is possible that they will be placed through KASE using the auctions, though direct subscription is also possible. A lot will depend on the placement results of the first part of the issue. When the circulation term ends the first and the second part of the bond issue are repaid simultaneously at face value. In case, if the repayment date happens to be a week-end or a holiday, then the repayment date will be the next business day. The owner of the bonds will receive an income equal to the difference between discounted value of the purchase and the repayment face value of the bonds. Those individuals, who purchased the bonds not later than 30 days till the officially announced maturity date of the bonds, are entitled to receive an income. FUND RAISING GOALS The money, raised by the issue of the bonds, will be used to increase the working capital of RGP "Kazakhstan temir joly".