Results of initial offering of the first issue bonds of RGP "Kazakhstan temir joly" from the first tranche

/KASE, July 10, 00, official press-release of the Exchange/ - On July 10, 2000 the auction for initial offering of the first issue bonds of RGP "Kazakhstan temir joly" (KZ2CLALN6A19, KASE official list of securities, category "A", trade code - TMJLb) with 12 month circulation term was held in the trade system of KASE. The offering of the first tranche for an amount of 10 mln U.S. dollars at face value was held, while total issue is $15 mln. Demand parameters 3 KASE members took part at the auction, who made 11 bids on behalf of four investors. At closing of the auction 8 bids to purchase 181,700 bonds for an amount of 16,351,413.00 U.S. dollars existed in the trade system of KASE. Three bids were canceled by the participants. Demand exceeded the supply 1.82 times on the first day already. Weighted average yield of the bonds, calculated by all submitted bids, has settled at 11.5054% APR and varied from 11.50 to 11.52% APR. The proportion of bids made on behalf of pension funds equaled 19.3% of all demand, that of brokerage and dealing companies - 35.8%, of clients of the brokers - 44.9%. The banks did not wish to buy the bonds for their portfolios. Auction results Actual volume of satisfied bids after the cut-off equaled 100,000 bonds for 8,999,550.00 U.S. dollars. 4 bids made by three members of KASE were satisfied. Cut-off and weighted average price of the bonds equaled 89.9955% of the face value, which corresponds to 11.5000% APR. It is this return that was declared by the issuer as the yield of RGP "Kazakhstan temir joly" the first issue bonds of the first tranche. By the results of the first auction day the issuer was able to float all planned tranche volume, therefore, the auction was considered valid and completed ahead of schedule. In actual volume of the issue the proportion of bids made on behalf of pension funds equaled 35.0%, that of brokerage and dealing companies - 65.0%. Actual volume of the issue in tenge (amount raised) will be determined on July 11, since the payments for the bonds purchased at the auction will be made on the next day till 6:00PM Almaty time in tenge at weighted average tenge to U.S. dollar rate that settles at the main (morning) session of KASE on the payment day. General information The bonds of RGP "Kazakhstan temir joly" were entered into official list of KASE securities, category "A" by the decision of the Exchange Council, dated June 23, 2000 and the decision of KASE Board dated, June 26, 2000. The securities being offered are the discount bonds indexed in respect of KZT/USD exchange rate. Face value of a bond is $100. Total issue volume - $15 mln at face value. Circulation term - 1 year (365 days).The date of issue and circulation - June 23, 2000. Maturity date - June 23, 2001. A bond's holder receives income that equals to the difference between discount value of purchase and nominal value of the redemption. The income will be repaid only to those entities, who purchased bonds before 30 days of the announced redemption date. The payments for the bonds, and their repayment are to be made in tenges at weighted average rate of the KASE main (morning) session, effective on the payment date. The bonds were to be offered in two parts. The first part of the issue for 10 mln U.S. dollars in nominal terms (100 th. bonds) will be offered on auction through TuranAlem Securities LLP. 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. Following are the conditions of floatation of the first part of the issue. Since the first tranche was floated within one day, and demand exceeded the supply significantly, the issuer decided to float the second part of the issue immediately on July 12.