National Bank notes-77 of #439 issue - floatation results

/IRBIS, Sep 29, 00/ - On September 29 the National Bank of Kazakhstan (NBK) held the 439th auction for floatation of notes with KZT100 par value and 77 day circulation term. Announced volume of the issue is set by the issuer at KZT500 mln. Size of satisfaction of non-competitive applications is 60% of specified amount. Auction was held with additional offering conducted during the day. Below is results of the floatation and its comparison with previous issue. Type of the securities Notes-77 Notes-77 NSIN KZ9BK1512A05 KZ9BK0812A04 KASE trade code NTK439.077 NTK437.077 IRBIS registration number 439/N 437/N Par value, KZT 100.00 100.00 Issuance date Sep 29, 00 Sep 21, 00 Circulation start date Sep 29, 00 Sep 22, 00 Maturity date Dec 15, 00 Dec 08, 00 Days in circulation 77 77 Number of Primary agents 15 (+ 5) Demand, mln KZT 2,810.1 (+ 2,141.3) WA yield on demand, % APR 8.13 (- 0.29) Planned volume, mln KZT 500.0 ( 0) Actual volume, mln KZT 2,001.6 (+ 1,530.8) Cut-off price, % of par value 98.36 ( 0) WA price, % of par value 98.36 ( 0) Maximum yield, % APR 7.88 ( 0) Weighted average yield, % APR 7.88 ( 0) Effective WA yield, % APR 8.12 ( 0) The last auction of the week (and month) held on the repayment day of previously issued securities did not bring any complications. Demand sharply grew up, bids yields fell down and the number of participants raised by one third. Today's repayments of previous issues (KZT 3,583.5 mln) had a major impact on traders. The position of issuer could be also logically explained. Since it had to repay significant amount stated above, the National Bank preferred maximally increase borrowing volume instead of yield decrease option (debt servicing cost). Floatation results showed that all last two week participants were mainly affected by short-term liquidity problem rather by unsatisfactory yields. Rates of short money indicated today that these problems are disappearing that leads to market stabilisation. Thus, pressure of primary agents went down substantially. NBK managed to receive smooth in price term and simultaneously large demand. The National Bank of Kazakhstan has completed the fortieth week of (Sep 25 - Oct 01) on the primary market of GS with following results. With actual repayment amount of KZT3,583.5 mln, the issuer has raised KZT2,893.9 mln at two auctions. Weekly net-borrowing balance of the National Bank of Kazakhstan is negative and totalled KZT689.6 mln.