Results of Additional initial offering auction of first issue municipal bonds of Eastern-Kazakhstan region

/KASE, June 26, 01, official press-release of the Exchange/ - On June 26, 2001, the additional initial offering auction of the first issue bonds of local executive body of Eastern-Kazakhstan region with 1,095 days (3 years) of circulation was held in the trade system of the Kazakhstan Stock Exchange (KASE). Announced offering volume - KZT412,130,000.0. Only competitive bids were accepted at the auction. The bonds were offered at discount price. The trades were held over the net price of the bonds (without accumulated interest) in percents to the face value. Following are the parameters of the additional offering auction. ------------------------------------------------------------------------------ EMISSION PARAMETERS --------------------------------------------- ------------------------------- Type of securities registered coupon bonds indexed to KZT/USD exchange rate NIN KZ7051806A46 Trade code of KASE VKU036.001 Face value, USD 100,00 Announced volume of emission 1,000,000,000.00 Circulation starts on June 20, 01 Maturity (nominal / actual) June 18, 04 / June 18, 04 Circulation term 1,095 (3 years) Coupon type semiannual Coupon rate, % APR 6.30 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 Time basis for payments actual/365 --------------------------------------------- ------------------------------- ADDITIONAL OFFERING --------------------------------------------- ------------------------------- Auction date June 26, 01 Settlement date June 26, 01 Offering volume 412,130,000.00 Accrued interest, % of face value 0.120822 Servicing exchange rate (KZT/USD) 146.45 --------------------------------------------- ------------------------------- DEMAND PARAMETERS --------------------------------------------- ------------------------------- Number of participants - KASE members 6 Volume of submitted bids, bonds 60,100 Volume of submitted bids, KZT (discount) 827,650,665.00 Bids-ask ratio, % 200.8 Bid prices, % of face value (net) minimal 95.5690 maximal 87.0000 weighted average 93.8807 Bids yield, % APR (semiannual basis / annual basis) minimal 8.0000 / 8.1596 maximal 11.5810 / 11.9155 weighted average 8.6686 / 8.8572 --------------------------------------------- ------------------------------- RESULTS OF ADDITIONAL OFFERING --------------------------------------------- ------------------------------- Volume of satisfied bids, bonds 29,635 Volume of satisfied bids, KZT (discount) 412,125,120.97 Prices, % of face value (net) cut-off 94.3200 weighted average 94.8062 Coupon yield to maturity, % APR (semiannual / annual basis maximal 8.4969 / 8.6769 weighted average 8.3027 / 8.4746 ------------------------------------------------------------------------------ Total of 16 bids have been put at the auction. The banks expressed the most interest in buying the bonds and accounted for 70.9% of the demand. The proportion of bids submitted using the pension assets equaled 29.1%. No brokerage companies submitted bids. After the cut-off procedure only 9 bids have been satisfied fully and 1 partially (three members ). By the results of the auction, 39.3% of the floatation volume was purchased by accumulative pension funds, and another 60.7% by banks. The issuer floated complete offering volume. Volume of the last additional offering to be held at KASE is KZT500m. The date and methodic of the auction will be announced additionally.