MEOKAM-24 of the Ministry of Finance of Kazakhstan issue #21 - complete offering results

/IRBIS, Oct.26, 00, retransmitted due to incorrect volume of satisfied bids and appearance of new information/ - On October 24 the Ministry of Finance and the National Bank of Kazakhstan held 21st auction for MEOKAM-24 floatation (728 days). Announced volume of the issue is determined by the issuer at KZT400 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 МЕОКАМ-24 МЕОКАМ-24 NSIN KZ52L2410A21 KZ52L1710A20 KASE trade code MOM024.021 MOM024.020 IRBIS registration number 21/24 20/24 Par value, KZT 1,000.00 1,000.00 Issuance date Oct.24, 00 Oct.17, 00 Payment day (till 11:00AM Almaty time) Oct.26, 00 Oct.19, 00 Circulation start date Oct.26, 00 Oct.19, 00 Maturity date Oct.24, 02 Oct.17, 02 Days in circulation 728 728 Coupon payments dates Apr.26, 01 Apr.19, 01 Oct.25, 01 Oct.18, 01 Apr.25, 02 Apr.18, 02 Oct.24, 02 Oct.17, 02 Number of primary dealers 12 (- 1) Demand, mln KZT 1,526.2 (+ 65.4) Max. fixed yield on demand, % APR 60.00 ( 0) Planned volume, mln KZT 400.0 (- 200.0) Actual volume, mln KZT 400.0 (- 200.0) Set up fixed yield, % APR 15.65 (- 0.10) According to the Ministry of finance the non-residents made no applications. Interesting feature of the auction is that the Ministry of Finance made an attempt to lower the yields of two-year bonds. It was achieved due to conducting additional offering, and not all investors, whose competitive bids were made not only higher than the cutoff rate, but at this rate also, found out about it on time. As a result, some bids that had to be satisfied were not satisfied. It arouse justified discontent among the investors. On the other hand, the discontent of the investors regarding the dissatisfaction of their bids means that the market is accepting a new return level. Considering a very high liquidity of the banks in tenge, constantly growing volume of the assets of pension funds, as well as the deficit of financial instruments on the market, it can be assumed that the Ministry of Finance will have a success in this game of lowering the yield of MEOKAM further.