MEOKAM-24 of the Ministry of Finance of Kazakhstan issue #23 - complete offering results

/IRBIS, Nov.21, 00/ - Today the Ministry of Finance and the National Bank of Kazakhstan held 23rd auction for MEOKAM-24 floatation (728 days). Announced volume of the issue is determined by the issuer at KZT250 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 KZ52L2111A23 KZ52L0811A20 KASE trade code MOM024.023 MOM024.022 IRBIS registration number 23/24 22/24 Par value, KZT 1,000.00 1,000.00 Issuance date Nov.21, 00 Nov.9, 00 Payment day (till 11:00AM Almaty time) Nov.23, 00 Nov.10, 00 Circulation start date Nov.23, 00 Nov.10, 00 Maturity date Nov.21, 02 Nov.8, 02 Days in circulation 728 728 Coupon payments dates May 24, 01 May 11, 01 Nov.22, 01 Nov.9, 01 May 23, 02 May 10, 02 Nov.21, 02 Nov.8, 02 Number of primary dealers 8 (- 2) Demand, mln KZT 209.8 (- 452.5) Max. fixed yield on demand, % APR 62.50 (+ 2.50) Planned volume, mln KZT 250.0 ( 0) Actual volume, mln KZT 115.8 (- 75.6) Set up fixed yield, % APR 15.45 (- 0.07) According to the Ministry of finance the non-residents made no applications. As in the sector, where three-year notes are offered, the demand for MEOKAM-24 is gradually decreasing and becoming more tough in terms of prices. This tendency has been traced during three auctions. However, the market pressure is completely neglected by the issuer, who can still afford himself to borrow the minimum amount on the basis of the principles of optimal debt restructuring. Despite a steady decrease in the borrowing amount, the yield of MEOKAM-24 falls four auctions in a row and decreased by 30 percentage points within the last month. Considering the fact, that during the next week repayment amount of the Ministry of Finance bonds is even smaller (KZT614.8 mln) than it was in this week (KZT747.3 mln), it can be expected that the issuer will keep the strategy that was mentioned above in initial offering sector.