MEIKAM-48 of the Ministry of Finance of Kazakhstan issue #2 - complete offering results

/IRBIS, Apr 27, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 2nd auction for MEIKAM-48 floatation with 1,460 days of circulation (4 years). Size of satisfaction of noncompetitive applications is 50% of specified amount. Following are complete offering results. Type of the securities MEIKAM-48 MEIKAM-48 NSIN KZ3GL2704A50 KZ3GL2803A50 KASE trade code MOM048.002 MOM048.001 IRBIS registration number 2i/48 1i/48 Par value, KZT 1,000.00 1,000.00 Auction date Apr 27, 01 March 29, 01 Payment day (till 11:00AM Almaty time) Apr 28, 01 March 30, 01 Circulation start date Apr 30, 01 Apr 2, 01 Maturity date Apr 27, 05 March 28, 05 Days in circulation 1,460 1,460 Planned volume, mln KZT 400.0 400.0 Number of primary dealers 14 (+ 7) Demand, mln KZT 2 421.0 (+ 788.5) Max. fixed yield on demand, % APR 50.00 (+ 25.00) Actual volume, mln KZT 350.0 ( -50.0) Set up fixed yield, % APR 4.00 (- 3.00) Coupon payments on these securities will be paid on: Aug 7, 01; Nov 7, 01; Feb 7, 02; May 7, 02; Aug 7, 02; Nov 7, 02; Feb 7, 03; May 7, 03; Aug 7, 03; Nov 7, 03; Feb 6, 04; May 7, 04; Aug 6, 04; Nov 5, 04; Feb 7, 05; May 6, 05. The Ministry of Finance informs that non-residents did not submit any bids at the auction. The auction results clearly show that this type of the bonds of the Ministry of Finance have been finally accepted by the market. It was this circumstance that allowed the auction to show the best results. As a result, the yields of MEIKAM at the auction was a surprise less to say. As IRBIS estimates under the inflation of the last three months at 2.5% (1.1% in January, 0.7% in February, 0.7% in March), actual yield of issued MEIKAM will reach about 14.0% APR for the first coupon. If the plans of the government regarding the inflation in 2001 are taken into account (7% on average), then this figure drops to 11.0% APR. In other words, the market participants equalized the yields of MEIKAM with current synchronous rates of non-indexed MEOKAM (12% APR at the last auction) by creating a demand for these securities, thus significantly lowering the investment attractiveness of the debt, which is indexed towards the inflation. The Ministry of Finance will finish the seventeenth week (April 23 -29) on the primary market of GB with the following results. With repayment and servicing volumes of KZT647.8 mln, the issuer raised KZT751.0 mln at two auctions. Thus, net-borrowing balance of the Ministry of Finance is estimated to be positive KZT103.2 mln. Total balance of all GB issuers during this week is negative KZT2,970.1 mln.