MEOKAM-36 of the Ministry of Finance of Kazakhstan issue #31 - complete offering results

/IRBIS, March 13, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 31st auction for MEOKAM-36 floatation (1,092 days). Announced volume of the issue is determined by the issuer at KZT400 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 KZ53L1103A40 KZ53L0303A40 KASE trade code MOM036.031 MOM036.030 IRBIS registration number 31/36 30/36 Par value, KZT 1,000.00 1,000.00 Issuance date March 13, 01 March 6, 01 Payment day (till 11:00AM Almaty time) March 15, 01 March 7, 01 Circulation start date March 15, 01 March 7, 01 Maturity date March 11, 04 March 3, 04 Days in circulation 1,092 1,092 Coupon payments dates Sep.13, 01 Sep.5, 01 March 14, 02 March 6, 02 Sep.12, 02 Sep.4, 02 March 13, 03 March 5, 03 Sep.11, 03 Sep.3, 03 March 11, 04 March 3, 04 Planned volume, mln KZT 400.0 ( 0) Number of primary dealers 14 (+ 1) Demand, mln KZT 2,080.5 (+ 65.0) Max. fixed yield on demand, % APR 25.00 ( 0) Actual volume, mln KZT 400.0 (+ 76.5) Set up fixed yield, % APR 12.99 (- 1.21) The auction looked rather interesting considering such substantial lowering of yield for three-year bonds. Demand for GB is high. This is particularly true on the secondary market. Dealer remark high tenge liquidity and deficit of instruments for investments of excessive money. Banks have no opportunity to support dollar as their have excessively purchased it before. Besides, National bank strictly regulates observance of foreign exchange position requirements. That is why banks compete with pension assets management companies on the GB market. The Finance Ministry (FM) of Kazakhstan has ended the eleventh calendar week (March 12-18) of year 2001 with following results. The issuer raised KZT700.0 mln on two actions and redeemed KZT139.3 mln (including coupon payments). Thus, weekly net borrowing balance of the FM equaled KZT560.7 mln. The auction results appeared to be very interesting meaning, first of all, strict position of the Finance Ministry to lower bonds' yield. Volume of submitted bids allowed to raise planned amount. Nevertheless, MOF preferred to lower rates once again raising less money than it had planned.