MEKKAM-6 #153 - offering results

/IRBIS, July 28, 00/ - Today the Ministry of Finance and the National Bank of Kazakhstan held 153rd auction for MEKKAM-6 offering (182 days). Announced volume of the issue - KZT250 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-6 MEKKAM-6 NSIN KZ46L2601A11 KZ46L1101A18 KASE trade code MKM006.153 MKM006.152 IRBIS registration number 153/6 152/6 Par value, KZT 100.00 100.00 Issuance date July 28, 00 July 10, 00 Circulation start date July 28, 00 July 13, 00 Maturity date Jan. 26, 01 Jan. 11, 01 Days in circulation 182 182 Number of Primary dealers 8 (- 2) Demand, mln KZT 1,209.0 (+ 106.5) WA yield on demand, % APR 13.06 (- 0.14) Planned volume, mln KZT 250.0 ( 0) Actual volume, mln KZT 250.0 (- 441.3) Cut-off price, % of par value 94.03 (+ 0.16) WA price, % of par value 94.03 (+ 0.16) Maximum yield, % APR 12.70 (- 0.36) Weighted average yield, % APR 12.70 (- 0.36) Effective WA yield, % APR 13.10 (- 0.39) The Ministry of finance says no applications were submitted by non-residents. As all the auctions held at the end of the week, this slightly unexpectedly organized by the Ministry of finance auction for offering the next issue of six months papers was characterized by an essential prevalence of demand over the supply. Apparently, the issuer decided to make a use of extraordinary big amount of money that had to come to correspondent accounts of the banks after the repayment of GS at the end of five day period. It these funds that have influenced an excessive liquidity in tenge on Friday evening: "overnight" rates fell to 0.05/2.0 APR. However, when conducting the cut-off the Ministry of finance was far from the purpose of cleaning up the correspondent accounts, since it is done by the National Bank. Limiting itself to planned amount of borrowing the issuer of MEKKAM used the situation to cut the yields of its bonds once again.