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

/KASE, July 12, 00, official press-release of the Exchange/ - On July 12, 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 second tranche for an amount of 5 mln U.S. dollars at face value was held, while total issue is $15 mln. Before this, on July 10 the first tranche of the bonds for an amount of 10 mln U.S. dollars at face value was placed at 11.50% APR. DEMAND PARAMETERS (in parentheses are comparable figures of the first tranche placement) Today 5 (3) KASE members took part at the auction, who made 13 (11) bids on behalf of 10 (4) investors to purchase 130,500 (181,700) bonds for an amount of 11,752,092.60 (16,351,413.00) U.S. dollars. Demand exceeded the supply 2.61 (1.82) times. Weighted average yield of the bonds, calculated by all submitted bids, has settled at 11.4909% (11.5054%) APR and varied from 11.47 (11.50) to 11.59 (11.52)% APR. The proportion of bids made on behalf of pension funds equaled 46.4 (19.3)% of all demand, that of brokerage and dealing companies - 0 (35.8)%, of clients of the brokers - 49.8 (44.9)%, of the banks - 3.8 (0)%. AUCTION RESULTS Actual volume of satisfied bids after the cut-off equaled 50,000 bonds for 4,503,660.00 U.S. dollars. 7 bids made by three members of KASE were satisfied. Cut-off and weighted average price of the bonds equaled 90.0732% of the face value, which corresponds to 11.4667% 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 second tranche. By the results of the first auction day the issuer was able to float all planned tranche volume. All bonds of the second part of the issue were bought by the pension assets management companies. Actual volume of the issue in tenge (amount raised) will be determined on July 13, 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.