Complete results of MEKKAM-03 #272 offering

/IRBIS, Oct 06, 00/ - On October 06 the Ministry of Finance and the National Bank of Kazakhstan held 272nd auction for MEKKAM-3 offering (91 days). Announced volume of the issue is determined at KZT300 mln. Size of satisfaction for noncompetitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar tranche: Type of the securities MEKKAM-3 MEKKAM-3 NSIN KZ43L0501A19 KZ43L0712A06 KASE trade code MKM003.272 MKM003.271 IRBIS registration number 272/3 271/3 Par value, KZT 100.00 100.00 Issuance date Oct 06, 00 Sep 04, 00 Circulation start date Oct 06, 00 Sep 07, 00 Maturity date Jan 05, 01 Dec 07, 01 Days in circulation 91 91 Number of Primary dealers 13 (+ 1) Demand, mln KZT 1,878.2 (- 64.9) WA yield on demand, % APR 9.96 (- 0.84) Planned volume, mln KZT 300.0 (+ 50.0) Actual volume, mln KZT 228.4 (+ 92.7) Cut-off price, % of par value 98.04 (+ 0.27) Weighted average price, % of par value 98.04 (+ 0.27) Maximum yield, % APR 8.00 (- 1.13) Weighted average yield, % APR 8.00 (- 1.13) Effective weighted average yield, % APR 8.24 (- 1.20) The Ministry of Finance (MOF) says no applications were submitted by non- residents. The basis for demand parameters of this auction was already created by MOF on the previous floatation of MEKKAM-12. At that auction MOF satisfied just one third of all submitted bids. Thus, today the issuer managed to lower yield by 113 percentage points. MOF used demand parameters as a tool for this objective. The borrowing volume was lower of the planned number. The MOF does not intend to increase its domestic debt, in particularly, using most short-term securities. Nevertheless, even this week MOF finished with positive borrowing balance. Investors interest in MEKAM was so high that every new auction was marked by triple excess of demand over announced issue volume. Market still enjoys by excess of free funds.