Results of Kazakhstan Temir Joly NSE second issue bonds initial offering

/KASE, July 12, 01, official press-release of the Exchange/ - Today the auction for offering of second issue inscribed coupon bonds of Kazakhstan Temir Joly NSE (Astana; KZ2EUY03A368, $100, $30m, July 10.01 - July 10.04, semiannual coupon at 8.0% APR) was held in the trade system of the Kazakhstan Stock Exchange (KASE). Whole issue volume at $30m, at face value, was placed at the auction. The auction was held in the trade system of the KASE from 11:30AM to 2:00PM Almaty time. The bonds purchased at the auction are to be paid by the buyers till 4:00PM Almaty time on July 13, 2001 at KZT146.70 per U.S. dollar. Only competitive bids had been accepted at the auction. The bids had been satisfied at a single price - cut-off price. Total of 13 bids were made from 7 members of the Exchange to buy 149,650 bonds for a total of $14,461,875.72, or KZT2,121,557,168.37 at current official rate. The demand reached 49.9% of announced issue volume expressed at face value. Clean prices (excluding accumulated interest, which is 0.066667% on the payment date) in submitted bids varied from 90.1600% (12.0114% APR) to 97.4401% (8.9944% APR). Weighted average clean price in all submitted bids equaled 96.6014% (9.3348% APR). Within total demand 75.7% of bids has been made by Pension Assets Management Companies, 13.4% - from second tier banks, 10.7% - clients of brokerage-dealing companies, and 0.2% - by the brokerage-dealing companies themselves. By the results of the auction, the issuer cut-off the bids at clean price of 97.4275% of the face value, which corresponds to 8.9994% APR on a semiannual basis. At this price four bids have been satisfied submitted from 3 members of the Exchange to buy 95,300 bonds for a total of $9,291,194.09. By the results of the auction, 31.8% of total issue has been placed. Actual volume of funds raised equaled KZT1,363,018,172.02. It is said that 82.9% of the bonds has been purchased by using pension assets, 0.3% - by brokerage-dealing companies, 16.8% - by brokers' clients. The additional offering of the bonds in the trade system of the KASE, by using the main trade mode (uninterrupted counter auction mode) will open on July 12 at 3:00PM Almaty time. From this time the traders can buy the bonds as if they did it on secondary market. Additional offering will be held on July 13 also. During the additional offering no commission will be collected by the Exchange, as none had been collected during initial offering.