MEOKAM-36 of the Ministry of Finance of Kazakhstan issue #37 - complete offering results

/IRBIS, May 03, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 37th auction for MEOKAM-36 floatation (1,095 days). Size of satisfaction of noncompetitive applications is 50% of specified amount. Following are complete offering results and the comparison with previous similar emission. Type of the securities MEOKAM-36 MEOKAM-36 NSIN KZ53L0305A48 KZ53L2604A42 KASE trade code MOM036.037 MOM036.036 IRBIS registration number 37/36 36/36 Par value, KZT 1,000.00 1,000.00 Issuance date May 03, 01 Apr. 23, 01 Payment day (till 11:00AM Almaty time) May 04, 01 Apr. 26, 01 Circulation start date May 04, 01 Apr. 27, 01 Maturity date (nominal / actual) May 03, 04 Apr. 26, 04 Days in circulation 1,095 1,095 Coupon payments dates (nominal / actual) 1 Nov. 02, 01 / Nov. 02, 01 Oct. 26, 01 / Oct. 25, 01 2 May 04, 02 / May 03, 02 Apr. 27, 02 / Apr. 26, 02 3 Nov. 02, 02 / Nov. 01, 02 Oct. 26, 02 / Oct. 25, 02 4 May 04, 03 / May 05, 03 Apr. 27, 03 / Apr. 25, 03 5 Nov. 02, 03 / Nov. 03, 03 Oct. 26, 03 / Oct. 24, 03 6 May 03, 04 / May 03, 04 Apr. 26, 04 / Apr. 26, 04 Planned volume, mln KZT 800.0 ( 0) Number of primary dealers 8 (+ 2) Demand, mln KZT 751.2 (- 560.8) Max. fixed yield on demand, 25.00 (+ 5.0) % APR Actual volume, mln KZT 210.2 (- 190.8) Set up fixed yield, % APR 8.00 (- 1.00) The Ministry of Finance informs that non-residents did not submit any bids at the auction. Auction results suggest that market still resists to lowering of yields for bonds issued by the National Bank and the Finance Ministry. Notes market is a clear evidence. In the MEKAM sector, the situation is less strict as major buyers are pension funds that less flexible than banks. Steadily growing pension assets forced funds to invest MEKAM at any terms. This could become an agenda when National Securities Commission would set planned 5% limit on investments into mid-term bonds of the Finance Ministry. Thus Finance Ministry does not have any problems with demand. Yield of floated MEOKAM has again declined. However, demand parameters as well as ratio of announced and actual emission volumes display that Finance Ministry is no longer a dictator on the market. According to IRBIS, market resistance is stipulated by narrowing of gap between MEOKAM yields and inflation. Last floatation of MEIKAM, inflation indexed GB, displayed higher investment potential of the latter. Nevertheless, smooth and sizable demand for MEIKAM lowered yield potential of MEIKAM putting investors into dependence from the Finance Ministry decisions over debt restructuring.