/KASE, June 21, 01, official press-release of the Exchange/ - The
Kazakhstan Stock Exchange (KASE) informs, that on June 26, 2001 the
additional offering auction of the first issue of coupon bonds of local
executive body of Eastern-Kazakhstan region (VKO) will be held in the
Trade system of the KASE.
The issuer is a local executive body of Eastern-Kazakhstan region (akimat).
Financial consultants of the issuer are DB SECURITIES (KAZAKHSTAN)
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 11, 2001.
The bonds were offered by the issuer at face value. The trade was held over
the fixed coupon rate, which is to be paid to bondholders semiannually.
Following are the parameters of the issue announced by the issuer and his
financial consultants.
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Type of securities registered coupon bonds indexed
to KZT/USD exchange rate
NIN KZ7051806A46
Trade code of KASE VKU036.001
IRBIS registration number 1/36VKU
Face value, USD 100,00
Announced issue volume, KZT 1,000,000,000.00
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Circulation starts on June 20, 01
Maturity (nominal / actual) June 18, 04 / June 18, 04
Circulation term 1,095 (3 years)
Calculation basis actual/365
Coupon type semiannual
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
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Announced volume of additional offering at the auction - KZT412,130,000.00
at face value.
The bids are made for the auction on June 26, 2001 in the Trade system of
the KASE from 9:00AM to noon Almaty time.
This time the bonds are offered not at face value, but at the prices in
submitted bids at a fixed coupon rate. Thus, the trade is held over the clean
price of the bonds, which is entered into the Trade system of the KASE
without accumulated interest in percents to the face value with two digit
accuracy. Accumulated interest on the offering date is 0.120822% of the
bond face value (6.3/365*7, where 6.3 is coupon rate, 365 - calculation
base, 7 - number of days from the circulation beginning date). The number
of bonds is shown in their face value.
The bids are satisfied by the issuer after the cut-off procedure made in
increments of one hundredth of the price. The bids, where the prices are
lower than the cut-off price, will be cut-off. All bids submitted at a price
equal to or more than the cut-off price, will be satisfied at the price shown
in the bids. The issuer can satisfy all or part of the bids where the prices
are equal to the cut-off price. In this case the bids are satisfied in the
order they have been placed.
Only competitive bids are accepted at the auction.
The bids can be made only by the members of the KASE holding "K"
category (right to participate at the government bonds trades admitted to the
Exchange). Investors can make bids through brokerage-dealing companies,
who are the members of the KASE of this category. Complete list of the
KASE members holding "K" category can be found on the Exchange's web
site at (
http://www.kase.kz/KASEMembers/).
All settlements regarding the purchasing (including at the auction), servicing
and repayment of the bonds are made in Kazakhstani tenges at official
KZT/USD rate of the National Bank, effective on the dates preceding the
settlement dates. The payments for the bonds purchased at the auction by
the investors are made through the organizations, which have accounts in
Central Depository of Securities CJSC and correspondent accounts in
National Bank of Kazakhstan.
The payment date for the bonds purchased at the auction is June 26,
2001 till 4:00PM Almaty time.
Issue, circulation and redemption procedures of the bonds are regulated by
the "Issuing, floatation, circulation, repayment and servicing rules for bonds
of the local executive body of Eastern-Kazakhstan region", which was
approved by the resolution of the Government of Kazakhstan #685 dated
May 22, 2001. Based on the rules, the issuer can call back the bonds by
paying the coupon for their actual circulation term during corresponding
period.
The purchasing of the bonds by Pension Assets Management Companies
and State Accumulative Pension Fund CJSC (SAPF) using the pension
assets is permitted by the resolution #846 of the National Securities
Commission of Kazakhstan Directorate, dated June 18, 2001 "On investing
the pension assets into the bonds of local executive body of East-
Kazakhstan region".
The bonds are the government bonds issued in non-documentary form
with the object of implementing Regional Investment Program (RIP) that
includes three 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.
On June 19, 2001 the first offering auction was held in the Trade system of
the KASE for floatation of VKO bonds. The issuer was offering KZT500m
worth of bonds. The trade was held over the fixed coupon rate.
A total of 15 bids were made at the auction to buy 57,500 bonds amounting
to $5,750,000.00 at debt face value. At current official rate (KZT146.45 per
dollar) it corresponds to KZT842,087,500.00. Demand exceeded the supply
1.68 times at the auction.
By the results of the auction, cut-off rate (and fixed coupon rate of VKO
bonds) was set by the issuer at 6.30% APR. As a result, only 2 bids have
been satisfied from two investors, for a total of $600 th. at face value (6,000
bonds) or KZT87,870,000.00 at current official rate (KZT146.45 per dollar).
Actual floatation volume was KZT412.1m, or 5.7 times less than planned
volume. By the results of the auction, 50% of the floatation volume was
purchased by accumulative pension funds, and another 50% - brokerage-
dealing companies. The coupon rate that has settled at the auction
corresponds to 6.30% APR YTM on semiannual basis or 6.40% APR on an
annual basis.