National Bank notes-84 of #445 issue - floatation results

11.10.00 00:00
/IRBIS, Oct 11, 00/ - Today the National Bank of Kazakhstan (NBK) held the 445th auction for floatation of notes with KZT100 par value and 84 day circulation term. Announced volume of the issue is set by the issuer at KZT700 mln. Size of satisfaction of non-competitive applications is 50% of specified amount. Auction was held with additional offering conducted during the day. Following are complete offering data and comparison with previous similar issue. Type of the securities Notes-84 NSIN KZ9CK0401A18 KASE trade code NTK445.084 IRBIS registration number 445/N Par value, KZT 100.00 Issuance date Oct 11, 00 Circulation start date Oct 12, 00 Maturity date Jan 04, 01 Days in circulation 84 Number of Primary agents 10 Demand, mln KZT 2,332.4 WA yield on demand, % APR 7.99 Planned volume, mln KZT 700.0 Actual volume, mln KZT 1,506.7 Cut-off price, % of par value 98.21 WA price, % of par value 98.21 Maximum yield, % APR 7.90 Weighted average yield, % APR 7.90 Effective WA yield, % APR 8.14 It is a first issue of notes with 84 days to maturity. Nevertheless, demand was high and exceeded planned volume more than three times. It is notably that today, the investors have to pay KZT950 mln for MEOKAM-24 and MEKKAM-12 floated on Monday and Tuesday together with present notes floatation. This fact did not affect demand parameters thus displaying excess of free funds on the banks' accounts. At the same time, payments made to NBK and the Finance ministry in the size of KZT2.5 bln brought some pressure on the forex market. After present auction, dollar off-exchange quotations feel down fixing decrease in demand for the US dollar. Evening quotations of "overnight" interbank tenge denominated deposits were the same as in morning (1.5-2.5/4.5% APR). In the KASE repo sector real rates of borrowing rose today to 3.68% from 2.0% at a previous day. Volume of repo opening operations varied for different terms from KZT209.1 mln to KZT49.3 mln. The present situation indicates that NBK's efforts in sterilisation of banks accounts are effective.