MEOKAM-36 of the Ministry of Finance of Kazakhstan issue #18 - complete offering results

/IRBIS, Dec.25, 00/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 18th auction for MEOKAM-36 floatation (1,092 days). Announced volume of the issue is determined by the issuer at KZT500 mln. Size of satisfaction of noncompetitive applications is 50% of specified amount. Following are complete offering results and the comparison with previous similar auction. Type of the securities MEOKAM-36 MEOKAM-36 NSIN KZ53L2512A35 KZ53L0412A30 KASE trade code MOM036.018 MOM036.015 IRBIS registration number 18/36 15/36 Par value, KZT 1,000.00 1,000.00 Issuance date Dec.25, 00 Dec.04, 00 Payment day (till 11:00AM Almaty time) Dec.28, 00 Dec.07, 00 Circulation start date Dec.28, 00 Dec.07, 00 Maturity date Dec.25, 03 Dec.04, 03 Days in circulation 1,092 1,092 Coupon payments dates June 28, 01 June 07, 01 Dec. 27, 01 Dec. 06, 01 June 27, 02 June 06, 02 Dec. 26, 02 Dec. 05, 02 June 26, 03 June 05, 03 Dec. 25, 03 Dec. 04, 03 Planned volume, mln KZT 500.0 ( 0) Number of primary dealers 9 (- 2) Demand, mln KZT 831.0 (- 13.8) Max. fixed yield on demand, % APR 60.00 ( 0) Actual volume, mln KZT 604.0 (+ 302.9) Set up fixed yield, % APR 17.10 (- 0.05) According to the Ministry of Finance (MOF) the non-residents made no applications. There are two interesting features of the auction. First, it is first successful issue after two cancellations. At the same time, the issuer did not undertake any visible measures to push demand up. Moreover, it even managed to lower yield. Second, MOF saw large demand floating three-year bonds than National bank at notes-14 auction. IRBIS analysts assume that the reason is in some specificity of the instrument. Notes are mostly favorable among banks that also participate on the forex. While, MEOKAM are an object of pension funds investments, which are not directly linked with forex market operations. Besides IRBIS does not include that auction was supported by entities affiliated to MOF.