Complete results of MEKKAM-3 #275 offering

/IRBIS, Nov.28, 00/ - Today the Ministry of Finance (MOF) and the National Bank of Kazakhstan held 275th auction for MEKKAM-3 offering (91 days). Announced volume of the issue is determined at KZT100 mln. Size of satisfaction for non-competitive 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 KZ43L0103A11 KZ43L1602A15 KASE trade code MKM003.275 MKM003.274 IRBIS registration number 275/3 274/3 Par value, KZT 100.00 100.00 Issuance date Nov.28, 00 Nov.16, 00 Circulation start date Nov.30, 00 Nov.17, 00 Maturity date March 1, 01 Feb.16, 01 Days in circulation 91 91 Number of Primary dealers 11 (+ 4) Demand, mln KZT 654.7 (- 109,1) WA yield on demand, % APR 9.75 (- 0.84) Planned volume, mln KZT 100.0 ( 0) Actual volume, mln KZT 100.0 (- 0.9) Cut-off price, % of par value 98.21 (+ 0.01) WA price, % of par value 98.21 (+ 0.01) Maximum yield, % APR 7.29 (- 0.04) WA yield, % APR 7.29 (- 0.04) Effective WA yield, % APR 7.49 (- 0.04) The Ministry of Finance (MOF) says no applications were submitted by non- residents. Despite of more than 6 times prevalence of the demand over the supply, the volumes of the bids made at the auction can be considered small. It is possible that the auction participants got used to the tactics of the Ministry of Finance, who is explicitly refusing to use his shortest securities to increase the debt lately. Therefore, it is obvious that the issuer will use the demand only to lower the yields of his securities. It is even urgent considering the fact that the results of this auction are used in setting the return of NSB-13 for the next circulation quarter. Once again, the Ministry of Finance's behavior matched such forecast, limited himself to planned amount of borrowings, and lowered the yields which are still more lower than current yields of even shorter notes of the National Bank with 70-84 day circulation terms.