Complete results of MEKKAM-12 #70 offering

/IRBIS, Dec.19, 00/ - Today, the Ministry of Finance and the National Bank of Kazakhstan held 70th auction for MEKKAM-12 offering (364 days). Announced volume of the issue is determined at KZT300 mln. Size of satisfaction for noncompetitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar auction: Type of the securities MEKKAM-12 MEKKAM-12 NSIN KZ4CL2012A19 KZ4CL0612A17 KASE trade code MKM012.70 MKM012.69 IRBIS registration number 70/12 69/12 Par value, KZT 100.00 100.00 Issuance date Dec.19, 00 Dec.5, 00 Circulation start date Dec.21, 00 Dec.7, 00 Maturity date Dec.20, 01 Dec.6, 01 Days in circulation 364 364 Number of Primary dealers 10 (- 3) Demand, mln KZT 745.6 (- 282.9) WA yield on demand, % APR 11.45 (- 0.07) Planned volume, mln KZT 300.0 ( 0) Actual volume, mln KZT 157.7 (- 42.5) Cut-off price, % of par value 91.24 (+ 0.04) WA price, % of par value 91.24 (+ 0.04) Maximum yield, % APR 9.60 (- 0.05) Weighted average yield, % APR 9.60 (- 0.05) Effective WA yield, % APR 9.60 (- 0.05) The Ministry of finance says no applications were submitted by non- residents. The demand for MEKKAM is still falling under a high liquidity of the participants. In the opinions of IRBIS specialists, it was mainly due to the issuer himself, who demonstrated to the investors several times lately that he will not take more than he plans to take. In order to protect himself from a fast drop of MEKKAM yields, dealers and their clients are giving preference to dose the volume of their bids. Meanwhile, MEKKAM-12 can be considered a quite attractive instrument, since in repo sector of the KASE the pension assets management companies regularly invest their money at much lower interests (compared with the interest offered by the Ministry of Finance) even in effective terms. It is quite possible that under this situation the Ministry of Finance is not having any difficulties on the primary market of his securities, and apparently, intends to lower the yields of his securities. The only difficulty is the offering of three-year bonds. Now two attempts of the issuer to impose his return on MEOKAM-36 have failed. It complicated the debt restructuring process, but not to the extent to make the Ministry of Finance to take any measures. The issuer has a big safety margin and can refuse to issue short-term papers, thus forcing the investors to buy more lengthy bonds.