MEOKAM-36 of the Ministry of Finance of Kazakhstan issue #20 - complete offering results

/IRBIS, Jan 18, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 20th 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 KZ53L1601A47 KZ53L2512A35 KASE trade code MOM036.020 MOM036.018 IRBIS registration number 20/36 18/36 Par value, KZT 1,000.00 1,000.00 Issuance date Jan.18, 01 Dec.25, 00 Payment day (till 11:00AM Almaty time) Jan.19, 01 Dec.28, 00 Circulation start date Jan.19, 01 Dec.28, 00 Maturity date Jan.16, 04 Dec.25, 03 Days in circulation 1,092 1,092 Coupon payments dates July 18, 01 June 28, 01 Jan.18, 02 Dec. 27, 01 July 19, 02 June 27, 02 Jan.17, 03 Dec. 26, 02 July 18, 03 June 26, 03 Jan.16, 04 Dec. 25, 03 Planned volume, mln KZT 500.0 ( 0) Number of primary dealers 8 (- 1) Demand, mln KZT 372.4 (- 458.6) Max. fixed yield on demand, % APR 60.00 ( 0) Actual volume, mln KZT 225.4 (- 378.6) Set up fixed yield, % APR 17.10 ( 0) According to the Ministry of Finance (MOF) the non-residents made no applications. Still, limited liquidity of the banks in tenge is affecting the demand parameters at MEOKAM-36 offering. The IRBIS specialists came to such conclusion after comparing the dynamics of one day repo rates and the demand for three- year bonds of the Ministry of Finance. Usually, this sector of the market is stable. However, when the banks lack for free funds, the pension assets management companies, the major buyers of MEOKAM, are better off by working on the money market, because the repo rates seem to be more attractive. In this case, the Ministry of Finance loses the demand. Last time the demand for MEOKAM-36 fell to its low level, like today, on November 20, 2000. It was from November 15 through 24 when the rates for one day repo hiked to 10-14% APR at the KASE, approximately the same as they are now. It should be noted that the Ministry of Finance deliberately matched the issue schedule to the GB repayment schedule for this week, conducting MEOKAM- 36 issue, the least popular bonds, on the day when the repayment volume is the greatest. However, the market participants did not want to invest their money into such lengthy papers. The market observations make it possible to assume that the liquidity problems will be solved completely tomorrow already. The cost of short money will decline. It means that at the next MEOKAM-36 auction the demand will reach its regular KZT500-800 mln level.