MEOKAM-24 of the Ministry of Finance of Kazakhstan issue #39 - complete offering results

/IRBIS, April 09, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held 39th auction for MEOKAM-24 floatation (728 days). Size of satisfaction of noncompetitive applications is 50% of specified amount. Following is the complete offering data and comparison with previous similar auction: Type of the securities МЕОКАМ-24 МЕОКАМ-24 NSIN KZ52L1903A35 KZ52L1903A35 KASE trade code MOM024.038 MOM024.038 IRBIS registration number 38/24 38/24 Par value, KZT 1,000.00 1,000.00 Issuance date Apr. 09, 01 March 19, 01 Payment day (till 11:00AM Almaty time) Apr. 12, 01 March 21, 01 Circulation start date Apr. 12, 01 March 21, 01 Maturity date Apr. 10, 03 March 19, 03 Days in circulation 728 728 Coupon payments dates Oct. 11, 01 Sept 19, 01 Apr. 11, 02 March 20, 02 Oct. 10, 02 Sept 18, 02 Apr. 10, 03 March 19, 03 Planned volume, mln KZT 800.0 ( 0) Number of primary dealers 11 (- 1) Demand, mln KZT 2,081.0 (+ 537.0) Max. fixed yield on demand, % APR 20.00 (- 5.0) Actual volume, mln KZT 751.0 (+ 451.0) Fixed yield, % APR 10.00 (- 0.85) According to the Ministry of Finance (MOF) non-residents did not submit any applications for the auction. Considering demand parameters, the issuer somewhat overestimated market's compliance to further lowering of two-year bonds yields. Despite grown demand in absolute terms, yield was too high to issue planned volume. It is notable that Finance Ministry preferred to lower emission volume than yield. It is not excluded that symbolic difficulties issuer met today could signalize about forthcoming lowering of MEOKAM yield to minimal level. The resistance factor for this trend is 9.8% inflation rate in 2000. More recent preliminary data (2.5% for the first quarter) give higher annualized level. National Bank considers 6-8% rate for 2001 and it looks rather real. Another real possibility is lowering of non-indexed MEOKAM bond below this level even despite high liquidity on the financial market.