Complete results of MEKKAM-12 #58 offering
/IRBIS, July 17, 00/ - Today the Ministry of Finance and the National Bank of Kazakhstan held 58th auction for MEKKAM-12 offering (364 days). Announced volume of the issue is determined at KZT300 mln. Size of satisfaction for incompetitive applications is 50% of specified amount.
Following is the complete offering data and comparison with previous similar auction:
---------------------------------------- ------------- ------------ Type of the securities MEKKAM-12 MEKKAM-12 NSIN KZ4CL1907A19 KZ4CL0507A15 KASE trade code MKM012.58 MKM012.57 IRBIS registration number 58/12 57/12 Par value, KZT 100.00 100.00 Issuance date July 17, 2000 July 04, 2000 Circulation start date July 20, 2000 July 06, 2000 Maturity date July 19, 2001 July 05, 2001 Days in circulation 364 364 Number of Primary dealers 9 (- 2) Demand, mln KZT 289.5 (- 280.7) WA yield on demand, % APR 14.94 (+ 0.02) Planned volume, mln KZT 300.0 (+ 50.0) Actual volume, mln KZT 154.4 (- 48.1) Cut-off price, % of par value 87.75 (+ 0.14) Weighted average price, % of par value 87.75 (+ 0.14) Maximum yield, % APR 13.96 (- 0.18) Weighted average yield, % APR 13.96 (- 0.18) Effective weighted average yield, % APR 13.96 (- 0.18) ---------------------------------------- ------------- ------------
The Ministry of Finance says no applications were submitted by non- residents.
The market conditions of this sector somewhat changed. The issuer did not even meet a planned volume of emission. This has long been unseen in the MEKKAM-12 market. At the same time, market indicators did not show any signs of lack of free funds.
Most likely, the professional market participants prefer more short-term instruments today that is more reasonable giving constantly decreasing yield for MEKKAM.
In turn, the Ministry of Finance does not need to worry at this market disposition as the current cost of debt servicing is not considerable. The deficit could be financed from other items of budget financing.