Complete results of MEKKAM-3 #278 offering

/IRBIS, Jan 22, 01/ - Today the Ministry of Finance (MOF) and the National Bank of Kazakhstan held 278th 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 KZ43L2604A11 KZ43L3003A16 KASE trade code MKM003.278 MKM003.277 IRBIS registration number 278/3 277/3 Par value, KZT 100.00 100.00 Issuance date Jan 22, 01 Dec.28, 00 Circulation start date Jan 25, 01 Dec.29, 00 Maturity date Apr 26, 01 March 30, 01 Days in circulation 91 91 Number of Primary dealers 8 (+ 1) Demand, mln KZT 611.9 (- 115.1) WA yield on demand, % APR 8.04 (+ 0.58) Planned volume, mln KZT 100.0 ( 0) Actual volume, mln KZT 89.4 (+ 9.5) Cut-off price, % of par value 98.38 ( 0) WA price, % of par value 98.39 (+ 0.01) Maximum yield, % APR 6.59 ( 0) WA yield, % APR 6.55 (- 0.04) Effective WA yield, % APR 6.71 (- 0.04) The Ministry of Finance (MOF) says no applications were submitted by non- residents. Result of the auction showed that MOF had demonstrated its intention to decrease to the limit yield for shortest bonds. Current yield of MEKKAM-3 on the primary market had already exceeded rates of longer notes of NBK. Nevertheless, at some tightening of demand price parameters, MOF preferred to cut-off price rigidly raising just symbolic amount and refusing to lift up the rate. The issuer has also been caught up with restructuring of he debt. More long- term bonds of 6, 12 month maturity have already become rare on the market. MEKKAM-3 has been offered as an attractive instrument. At the same time, the issuer has still conducted MEOKAM floatation on a regular basis despite limited demand.