National Bank notes-70 of #471 issue - floatation results

/IRBIS, Dec.11, 00/ - Today the National Bank of Kazakhstan (NBK) held the 471st auction for floatation of notes with KZT100 par value and 70 day circulation term. Announced volume of the issue is set by the issuer at KZT900 mln. Size of satisfaction of non-competitive applications is 60% 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-70 Notes-70 NSIN KZ9EK2002A19 KZ9AK0202A11 KASE trade code NTK471.070 NTK464.070 IRBIS registration number 471/N 464/N Par value, KZT 100.00 100.00 Issuance date Dec.11, 00 Nov.24, 00 Circulation start date Dec.12, 00 Nov.24, 00 Maturity date Feb.20, 01 Feb.02, 01 Days in circulation 70 70 Number of Primary agents 11 (+ 2) Demand, mln KZT 1,650.6 (- 667.6) WA yield on demand, % APR 7.81 (+ 0.05) Planned volume, mln KZT 900.0 (+ 200.0) Actual volume, mln KZT 1,565.1 (- 374.7) Cut-off price, % of par value 98.54 ( 0) WA price, % of par value 98.54 ( 0) Maximum yield, % APR 7.70 ( 0) Weighted average yield, % APR 7.70 ( 0) Effective WA yield, % APR 7.94 ( 0) It is clear, that National Bank sterilises the market in advance to the extraordinary schedule and redemption of GB on the this week. As early as on Tuesday, the scheduled redemption of notes-63 #443 (KZ99K1212A03) will give KZT777.7 mln. Usually, the issuer redeems its bonds in the second half of a week. The bids declared could be probably used as a tool for lowering yields. However, the NBK was firm and preferred to satisfy all bids. In general, the demand parameters are becoming rigid. The Finance Ministry failed to float three-year MEOKAM rejecting price terms offered by dealers. It was probably the forex market developments that forced dealers to review their tactics. The devaluation expectations (short-term) are increasing with every day. The current pace of tenge devaluation at weekly rate of 11.4% APR is a competitive tool against notes. The demand for notes is falling. Nevertheless, the NBK is not confused and has declared two issue of notes for KZT2.0 bln each (Wednesday, Friday). Foreseeing large GB redemption on the week (KZT6.0 bln) NBK has started activity on narrowing of monetary base.