National Bank notes-42 of #442 issue - floatation results

/IRBIS, Oct 05, 00/ - On October 05 the National Bank of Kazakhstan (NBK) held the 442nd auction for floatation of notes with KZT100 par value and 42 day circulation term. Announced volume of the issue is set by the issuer at KZT700 mln. Size of satisfaction of non-competitive applications is 60% of specified amount. Auction was held with additional offering conducted during the day. The last floatation of notes-42 was held on June 21, 2000. Type of the securities Notes-42 NSIN KZ96K1711A02 KASE trade code NTK442.042 IRBIS registration number 442/N Par value, KZT 100.00 Issuance date Oct 05, 00 Circulation start date Oct 06, 00 Maturity date Nov 17, 00 Days in circulation 42 Number of Primary agents 9 Demand, mln KZT 891.5 WA yield on demand, % APR 7.69 Planned volume, mln KZT 700.0 Actual volume, mln KZT 788.4 Cut-off price, % of par value 99.14 WA price, % of par value 99.14 Maximum yield, % APR 7.52 Weighted average yield, % APR 7.52 Effective WA yield, % APR 7.77 Extraordinary auction held by NBK and intended for sterilization of banks correspondent accounts did not meet the same level of demand as it had been on Tuesday and Wednesday. It looks like payments for GS purchased on last auctions seized the main part of substantial funds. Nevertheless, the issuer conducted total "clean up" procedure and took almost all bids. Judging from effective rate, NBK again lowered yields in comparison to the previous issue. Weighted average rate of notes-63 on Wednesday amounted to 7.97%. It is interesting that main demand (KZT2.2 bln) was submitted on the auction for MEKKAM-12 rather than on notes trades. The MEKKAM are more interest bearing.