/IRBIS, July 5, 00 official press-release of the Exchange/ - Kazakhstan Stock
Exchange (KASE) informs that on July 7, 2000 the auction for primary
floatation of the bonds of local executive body of Atyrau oblast will be
held in the trade system of KASE.
The issuer of these securities is local executive body (akimat) of Atyrau
oblast of Kazakhstan. Financial consultant of the issuer - Fondovii service
CJSC (Almaty). Legal appraisal of the bond issue was carried out by
Kazakhstan Legal Group LLP. Financial agent of the issue is KASE.
The bonds are admitted to circulation on KASE by the decision of KASE
Exchange Council dated June 29, 2000 and the decision of KASE Board
dated June 30, 2000.
Bonds' issue, circulation and redemption procedures are regulated by the
"Issuing, floatation, circulation, repayment and servicing rules for bonds of
the local executive body of Atyrau oblast", which was approved by the
resolution of the Government of Kazakhstan #940 dated June 26.
Following documents that regulate the borrowing could be noted as well
(KASE could present documents to all interested parties):
- "Atyrau oblast local executive body borrowing" resolution of the
government of the Republic of Kazakhstan #752 dated May 19, 2000;
- "Atyrau oblast local executive body borrowing" decision of the Governor
of Atyrau oblast #251 dated December 6, 1999;
- the decision of Atyrau oblast maslikhat of II convocation dated December 7,
1999 on "Atyrau oblast regional programs financing within the
borrowing limits of local executive bodies" approved by the Law of the
Republic of Kazakhstan #453-1 dated November 11, 1999 "On republican
budget in 2000";
- the decision of Atyrau oblast Governor #363 dated February 28, 2000
"On amendments and additions to "On the oblast budget in 2000"
decision of the acting Governor of the oblast #238, dated November 25,
1999;
- the decision of the third session of Atyrau oblast maslikhat of II
convocation #34-II dated March 02, 2000 "On amendments and additions
to "On the oblast budget in 2000" decision of the acting Governor of the
oblast #238, dated November 25, 1999;
The securities being offered are the government issue securities, which
are issued in non-documentary form with the object to reconstruct and repair
automobile roads in Atyrau. The bonds coupon indexed in respect to
KZT/USD exchange rate. Face value of a bond is $100. Announced issue
volume - KZT650 mln. The date of circulation and payment for bonds
purchased on the primary floatation - July 10, 2000. Circulation term - 1 year
(364 days). Maturity date - July 10, 2001. The rate of coupon interest paid
semi-annually, January 10 and July 10 2001, will be defined on the auction.
KASE trade code - ARU012.001. National identification number (NIN) -
KZ7041007A10. The accuracy of quotation in the trade system of KASE - 4
decimal point.
Applications for the auction will be submitted on July 7, 2000 in the Trade
system of KASE from 11:30AM till 12:30PM of Almaty time. The coupon
interest rate will be the subject to auctioning. Yield is indicated in per sent
to face value of a bond per annum. The number of bonds is stated in their face
value.
Bids satisfaction is conducted by the results of auction and after the cutting
procedure implementation. Bids are cut if their yields exceed the rate stated
by the issuer as a cutting yield. Bids with yields that are lower or the same
to the cutting yield are satisfied on the basis of unified yield, which is
equal to the cutting yield. Only competitive bids are accepted at auction.
Applications can be submitted only by members of KASE of category "K"
(right to participate in trades in state securities, which are admitted to
trade on the Exchange). Investors may submit applications through broker-dealer
companies with catсegory of membership. Complete list of KASE members
holding category "K" is published on (
http://www.kase.kz/KASEMembers/)
web site of the Exchange.
Payment date for the bonds purchased on the auction - July 10, 2000 till
16:00PM of Almaty time.
The payment is made in Kazakhstan tenge at the official rate of the
National Bank of Kazakhstan to the US dollar, effective on the dates prior
to payment dates. Investors will pay for the bonds purchased on the auction
through organisations, which have accounts in CJSC "Central depository of
securities" (Almaty) and correspondent accounts in the National Bank of
Kazakhstan.
Municipal bonds could be purchased by pension assets management
companies (PAMC) involving assets of accumulative pension funds only if
the approval from National Securities Commission of the Republic of
Kazakhstan (NSC) is given. Until now, KASE does not have any documents
that could approve such procedure in respect to bonds of Atyrau oblast.
Additional information will be given on the decision of the commission.
Bonds of Atyrau oblast are the fourth borrowing in Kazakhstan conducted by
the local executives bodies. Previous issues were the bonds of executive
bodies of Mangistau oblast, Almaty and Astana cities. The first coupon
payment on municipal bonds - bonds of Astana city (KZ71L2612A08, trade
code - ASU012.001) was fully paid off according to the official notification
of investors dated June 27, 2000 in the amount of KZT10,059,645.70, or
70,544.50 U.S. dollars at official rate of June 26, 2000.