/IRBIS, June 15, 01 official press-release of KASE/ - Kazakhstan Stock
Exchange (KASE) informs that initial public offering of municipal bonds
of East-Kazakhstan region will be held on June 15, 2001 in the trade
system of KASE.
The issuer is local executive body of East-Kazakhstan region (akimat).
Financial consultants of the issuer are DB SECURITIES OJSC and
TuranAlem Securities LLP. The legal consultant of emission and the issuer is
White & Case LLP (Almaty). Financial agent - Kazakhstan Stock Exchange
CJSC (Almaty). The register is maintained by Central Depository of
Securities CJSC (Almaty). The market maker of bonds is TuranAlem
Securities LLP.
The bonds were admitted to trades on June 12, 2001 by the decision of the
Board of KASE and resolution of the Exchange Council dated June 12, 2001.
Parameters of the emission are presented in the table below:
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Type of securities registered coupon bonds indexed
to KZT/USD exchange rate
NIN KZ7051806A46
Trade code of KASE VKU036.001
Registration number of IRBIS 1/36VKU
Face value, USD 100,00
Auction date June 19, 01
Settlement date (till 16:00 ALT) June 19, 01
Interest accrual date June 20, 01
Maturity (nominal / actual) June 18, 04 / June 18, 04
Circulation term 1095 (3 years)
Coupon type semiannual
Coupon rate (interest rate) fixed
Dates of coupon payments (nominal / actual) 1 18.12.01 / 18.12.01
2 19.06.02 / 19.06.02
3 18.12.02 / 18.12.02
4 19.06.03 / 19.06.03
5 18.12.03 / 18.12.03
6 18.06.04 / 18.06.04
Announced volume of emission, KZT 1,000,000,000.00
Offering volume, KZT 500,000,000.00
Time basis for payments actual/365
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Auction applications to be submitted on June 19, 2001 in the trade system of
KASE from 09:00 till 12:00 of Almaty time. Bonds are offered at face value.
The coupon interest rate will be a subject of an auction indicated in per
sent to face value of a bond per annum. The number of bonds is stated in
their face value.
Bids satisfaction is conducted by the results of auction and after the cutting
procedure implementation (0.01% step). Bids are cut if their yields exceed
the rate stated by the issuer as a cutting yield. Bids with yields that are
lower or the same to the cutting yield are satisfied on the basis of unified
yield, which is equal to the cutting yield. Only competitive bids are accepted
at auction.
Applications can be submitted only by members of KASE of category "K"
(right to participate in trades in state securities, which are admitted to
trade on the Exchange). Investors may submit applications through broker-dealer
companies, KASE members on this category. Complete list of KASE
members holding category "K" is published on
(
http://www.kase.kz/KASEMembers/) web site of the Exchange.
The payment is made in Kazakhstan tenge at the official rate of the
National Bank of Kazakhstan to the US dollar, effective on the dates prior
to payment dates. Investors will pay for the bonds purchased on the auction
through organisations, which have accounts in Central Depository of
Securities CJSC (Almaty) and correspondent accounts in the National Bank
of Kazakhstan.
Municipal bonds could be purchased by pension assets management
companies (PAMC) involving assets of accumulative pension funds only if
the approval from National Securities Commission of the Republic of
Kazakhstan (NSC) is given. Until now, KASE does not have any documents
that could approve such procedure in respect to bonds of East-Kazakhstan
region. Additional information will be given on the decision of the
commission.
Bonds' issue, circulation and redemption procedures are regulated by the
"Issuing, floatation, circulation, repayment and servicing rules for bonds of
the local executive body of East-Kazakhstan region", which was approved by
the resolution of the Government of Kazakhstan #685 dated May 22, 2001.
Following documents that regulate the borrowing could be noted as well
(KASE could present documents to all interested parties):
- resolution of the Government of Kazakhstan #835 dated March 26,
2001 "On Regional investment program and borrowing of the local
executive body of East-Kazakhstan region"
- decision of regional Maslikhat (regional legislative body) "On regional
budget for 2001" #7/2-11 dated Dec.26, 2000
- decision of regional Maslikhat #8/5-11 dated March 27, 2001 "On
amendments and modifications into decision of the Maslikhat "On
regional budget for 2001" #7/2-11 dated Dec.26, 2000"
- decision of regional Maslikhat #9/2-11 dated April 27, 2001 "On
amendments and modifications into decision of the Maslikhat "On
regional budget for 2001" #7/2-11 dated Dec.26, 2000"
- decision of the Akim (head of the region) of East-Kazakhstan #1013
dated March 21, 2001 "On measures on execution of Regional
investment borrowing program according to the "Budget System Law
of Kazakhstan."
The securities being offered are the government issue securities, which
are issued in non-documentary form with the object to implement Regional
Investment Program (RIP) that includes thee projects:
- Construction and launching of a beer plant (Vostok-pivo LLP,
Semipalatinsk)
- production and processing of gold ore from the Bolshevik deposit.
The project is operated by mining metallurgy company (MMC)
"Altyn-Aimak" (Ust-Kamenogorsk, created in 1999 by merger of Irtish
Zoloto CJSC and Artel Trud CJSC. Final product is commodity gold.
- small and medium business assistance, assistance to agricultural
producers.
Bonds of East-Kazakhstan region is fifth borrowing in Kazakhstan conducted
by the local executives bodies. Previously, municipal bonds were offered and
fully redeemed by Mangistau region, Almaty and Astana cities. Currently,
only Atyrau bonds are circulating on the market. The maturity date is July 10,
2001. First coupon payment was fully paid off according to schedule on
Jan.10, 2001.