Complete results of MEOKAM-24 #14 flotation

/IRBIS, Aug. 1, 00/ - Today the Ministry of Finance and the National Bank of Kazakhstan held 14th auction for MEOKAM-24 floatation (728 days). Announced volume of the issue is determined by the issuer at KZT250 mln. Size of satisfaction of noncompetitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar auction: Type of the securities MEOKAM-24 MEOKAM-24 NSIN KZ52L0108A22 KZ52L1807A24 KASE trade code MOM024.014 MOM024.013 IRBIS registration number 14/24 13/24 Par value, KZT 1,000.00 1,000.00 Issuance date Aug 01, 2000 July 18, 2000 Payment day (till 11:00AM Almaty time) Aug 03, 2000 July 20, 2000 Circulation start date Aug 03, 2000 July 20, 2000 Maturity date Aug 01, 2002 July 18, 2002 Days in circulation 728 728 Coupon payments dates Feb 01, 2001 Jan 18, 2001 Aug 02, 2001 July 19, 2001 Jan 31, 2002 Jan 17, 2002 Aug 01, 2002 July 18, 2002 Number of primary dealers 6 (- 4) Demand, mln KZT 80.8 (- 343.3) Max. fixed yield on demand, % APR 60.00 (- 5.00) Planned volume, mln KZT 250.0 (- 50.0) Actual volume, mln KZT 58.8 (- 203.3) Set up fixed yield, % APR 16.30 ( 0) Results of auction expressed non-realised hopes of the issuer (if any were there) to use the part of cut-off demand from Monday MEKKAM-6 floatation as a mean to decrease yields on MEOKAM. Investor is not attracted by two- year securities and preferring short-term instruments. It seems that Finance Ministry did not find any support of participants that had previously been active at MEOKAM offerings. There was some competition come from NBK notes. Nevertheless, there is no opposition of two issuers. Sufficient budget financing allows Ministry of Finance to maintain negative balance of borrowing steadily decreasing domestic debt. This situation as well as steady growth of banksТ deposit base lead to excessive tenge liquidity under limited possibilities to finance the real sector. Thus, the NBKТs behaviour is explainable. It tries to seize free funds on correspondent accounts of banks to avoid any speculative movements resulting from liquidity. The notes are just an instrument.