MEKKAM-12 of the Ministry of Finance of Kazakhstan issue #72 - complete offering results

/IRBIS, May 10, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 72nd auction for MEKKAM-12 floatation (365 days). Size of satisfaction of incompetitive applications is 50% of specified amount. Following are complete offering results. Since the last time MEKKAM-12 had been offered on January 1, 2001 (yield at 9.60% APR), no comparison with the previous issue is given in the table. Type of the securities MEKKAM-12 NSIN KZ4CL1005A28 KASE trade code MKM012.072 IRBIS registration number 72/12 Par value, KZT 100.00 Issuance date May 10, 01 Payment day May 11, 01 Circulation start date May 10, 01 Days in circulation 365 Planned volume, mln KZT 250.0 Number of primary dealers 12 Demand, mln KZT 976.5 Max. WA yield on demand, % APR 9.27 Actual volume, mln KZT 139.0 Cut-off price, KZT 93.20 WA price, KZT 93.20 Max. yield, % APR 7.30 WA yield, % APR 7.30 WA effective yield, % APR 7.30 The Ministry of Finance informs that non-residents did not submit any bids at the auction. Demand for MEKKAM-12 was strict in terms of prices. The market participants keep resisting the rates decline. Despite a noticeable prevalence of the demand over the supply, the Ministry of Finance was not able to float all planned volume at necessary return level. This pattern is being observed at the auctions of the Ministry of Finance during a month already. In the opinions of IRBIS analysts, soon the situation will gradually change favorably to the issuers of GB. Exchange rate of the tenge to dollar begins stabilizing, and the repayment volumes of GB, due to their schedule, grow. The market is on the edge of excessive liquidity, which is under a deficit of financial instruments available to pension funds, will make the demand to grow at the auctions of the Ministry of Finance, and possible, to further decease in the rates.