National Bank notes-84 of #517 issue - floatation results

/IRBIS, Apr 12, 01/ - Today the National Bank of Kazakhstan (NBK) held the 517th auction for floatation of notes with KZT100 par value and 84 day circulation term. Size of satisfaction of noncompetitive applications is 60% of specified amount. The auction was conducted with additional floatation that took place at the same day. Type of the securities Notes-84 Notes-84 NSIN KZ9CK0607A10 KZ9CK2806A15 KASE trade code NTK517.084 NTK514.084 IRBIS registration number 517/N 514/N Par value, KZT 100.00 100.00 Issuance date Apr. 12, 01 Apr. 04, 01 Circulation start date Apr. 13, 01 Apr. 05, 01 Maturity date July 06, 01 June 28, 01 Days in circulation 84 84 Planned volume, mln KZT 500.0 ( 0) Number of Primary agents 11 (+ 1) Demand, mln KZT 2,074.9 (- 654.8) WA yield on demand, % APR 6.15 (+ 0.53) Actual volume, mln KZT 1,568.1 (- 445.7) Cut-off price, % of par value 98.76 ( 0) WA price, % of par value 98.76 ( 0) Maximum yield, % APR 5.44 ( 0) Weighted average yield, % APR 5.44 ( 0) Effective WA yield, % APR 5.55 ( 0) Under influence of GB redemption (two repayments of euronotes at face value and coupon of MEOKAM-24 for a total of KZT1.7 bln) demand for notes increased. However, yield in submitted bids started growing - investors press the issuer because of low interest rates. That is probably why NBK refused to decline yield any further and has focused on sterilization of loro accounts. This is surprising fact as tenge liquidity is not sufficient to provide adequate support for dollar. As a result, tenge has caught growth trend. While this does not conform to NBK scenario considering its tactics on the forex market. It follows that NBK's current target is inflation related. It takes all chances to sterilize market as far as demand parameters for notes do not allow for yield growth.