Demand exceeded supply 2.1 times at additional offering of Eastern- Kazakhstan region municipal bonds

/KASE, June 26, 01/ - Today initial additional offering auction was held in the trade system of the Kazakhstan Stock Exchange (KASE) for floatation of the first issue inscribed coupon bonds of local executive body of Eastern- Kazakhstan region (VKO; KZ7051806A46, KASE trade code - VKU036.001; $100, KZT1bn, June 20.01 - June 18.04, semiannual coupon at 6.30% APR). Announced additional offering volume was set by the issuer at KZT412,130,000.00 of the bond face value. The bids were accepted from 9:00AM till noon Almaty time. The bonds were offered by the issuer at the price submitted in the bids. Only competitive bids were accepted at the auction. A total of 16 bids were made at the auction to buy 60,100 bonds amounting to $5,649,492.60. At current official rate (KZT146.50 per dollar) it corresponds to KZT827,650,665.50. Volume of submitted bids equaled KZT880,465,000.00 at debt face value. Thus, demand exceeded the supply 2.14 times at the auction. Just like in previous auction, the banks expressed the most interest in buying the bonds, who accounted for 70.9% of the demand. The proportion of bids submitted by using the pension assets equaled 29.1%. No bids have been made by brokerage-dealing companies. Clean prices varied from 95.5690% to 87.0000% of the bond face value. Weighted average price for a whole demand equaled 93.8807%. Minimum yield to maturity of the bonds based on submitted bids (semiannual basis, in parentheses - annual basis) - 8.00 (8.16)% APR, maximum - 11.58 (11.92)% APR, weighted average - 8.6686 (8.8572)% APR. Accumulated interest on the additional floatation date equals 0.120822% of the bond face value. Calculation basis of the bonds - Actual/365. The results of the auction will be announced after the issuer conducts cut-off. Again, the bids placed to buy VKO bonds will be satisfied by the issuer by the results of the auction after the cut-off procedure made at 0.01 increments. The bids, where the yields exceed the rate chosen by the issuer as a cut-off rate, will be eliminated. All bids submitted at the rates equal to or lower than the cut-off rate will be satisfied by the issuer at a single rate, which equals the cut-off rate.