MEOKAM-36 of the Ministry of Finance of Kazakhstan issue #11 - complete offering results

/IRBIS, Nov 06, 00/ - On Nov 06 the Ministry of Finance and the National Bank of Kazakhstan held the 11th auction for MEOKAM-36 floatation (1,092 days). Announced volume of the issue is determined by the issuer at KZT600 mln. Size of satisfaction of noncompetitive applications is 50% of specified amount. Following are complete offering results and the comparison with previous similar tranche. Type of the securities MEOKAM-36 MEOKAM-36 NSIN KZ53L0611A39 KZ53L2310A39 KASE trade code MOM036.011 MOM036.010 IRBIS registration number 11/36 10/36 Par value, KZT 1,000.00 1,000.00 Issuance date Nov 06, 00 Nov 02, 00 Payment day (till 11:00AM Almaty time) Nov 09, 00 Nov 03, 00 Circulation start date Nov 09, 00 Nov 03, 00 Maturity date Nov 06, 03 Oct 30, 03 Days in circulation 1,092 1,092 Coupon payments dates May 10, 01 May 03, 01 Nov 08, 01 Nov 01, 01 May 09, 02 May 02, 02 Nov 07, 02 Oct 31, 02 May 08, 03 May 01, 03 Nov 06, 03 Oct 30, 03 Number of primary dealers 10 (+ 1) Demand, mln KZT 452.0 (- 413.7) Max. fixed yield on demand, % APR 60.00 ( 0) Planned volume, mln KZT 600.0 ( 0) Actual volume, mln KZT 325.0 (- 404.7) Set up fixed yield, % APR 17.30 ( 0) According to the Ministry of finance the non-residents made no applications. Today the issuer met unexpectedly low demand. It was not able to raise planned volume whereas all submitted bids were satisfied. IRBIS analysts consider that exceptionally high borrowing volume of the previous week was the main reason for present development. It also looks like participants reserve money for tomorrow MEKKAM-6 auction. Besides, demand parameters was affected by scheduled floatation of short-term notes on this week with 35 and 56 circulation days, which are in favor among dealers. The MOF should be interested in maximal borrowing volume as it repays coupon interest to holders of euronotes of the fourth issue on Nov 11 (XS0111078183; May 11, 00-May 11, 07; $350.0 mln; semiannual 11.125% APR). It is $19,468.75 th or KZT2,778.1 mln to be paid off at the current exchange rate of KASE. The weekly repayment volume of domestic GS of the MOF amounts to KZT1,799.2 mln. (repayment MEKAVM-9, NIN KZ49L1011A06). These fund must be repaid on Nov 10. Despite above described situation the MOF did not meet expectations of market participants and the yield was not raised up. Most likely, the issuer will stick to this tactics further using favorable situation with budget financing.