National Bank notes-70 of #529 issue - floatation results

/IRBIS, May 24, 01/ - Today the National Bank of Kazakhstan (NBK) held the 529th auction for floatation of notes with KZT100 par value and 70 days circulation term. Size of satisfaction of non-competitive applications is 60% of specified amount. Auction was held with additional offering conducted during the day. Following are complete offering data and comparison with previous similar issue, which was conducted more than a month ago. Type of the securities Notes-70 Notes-70 NSIN KZ9AK0308A14 KZ9AK2806A17 KASE trade code NTK529.070 NTK518.070 IRBIS registration number 529/N 518/N Par value, KZT 100.00 100.00 Issuance date May 24, 01 April 18, 01 Circulation start date May 25, 01 April 19, 01 Maturity date Aug 3, 01 June 28, 01 Days in circulation 70 70 Planned volume, mln KZT 500,0 ( 0) Number of Primary agents 8 (- 2) Demand, mln KZT 312.3 (- 588.0) WA yield on demand, % APR 6.85 (+ 0.59) Actual volume, mln KZT 94.5 (- 7.0) Cut-off price, % of par value 98.99 ( 0) WA price, % of par value 98.99 ( 0) Maximum yield, % APR 5.31 ( 0) Weighted average yield, % APR 5.31 ( 0) Effective WA yield, % APR 5.42 ( 0) Relative to previous offering of the notes (KZ9CK1508A18, notes-84 dated May 22, 01) demand declined by KZT1,145.7 mln (78.6%), actual offering volume - by KZT82.5 mln (46.6%), and effective yield fell from 5.60% APR to what is shown in the table. Despite all attempts of the National Bank, there is no success in restoring the market liquidity. Limited free funds, due to recent budgetary payments and active purchases of the dollars by the banks, does not allow the issuer of the notes get a big volume of demand at the offerings. Under such conditions the issuer acted traditionally: unchanged yield at the cut-off and borrowing volume which provides for such rate. There is no talk about the cleanup of the market. The National Bank is only helping to use the money for those who has it.