/KASE, July 24, 01, official press-release of the Exchange/ - The
Kazakhstan Stock Exchange (KASE) informs, that on July 31, 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 issue and the
issuer is White & Case LLP (Almaty). Financial underwriter - Kazakhstan
Stock Exchange CJSC (Almaty). The register is maintained by Central
Depository of Securities CJSC (Almaty). The market maker of VKO bonds at
KASE 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 days (3 years)
Calculation basis actual/365
Coupon type semiannual
Coupon rate 6.30% APR
Dates of coupon payments (nominal / actual) 1 Dec 18. 01 / Dec 18. 01
2 June 19.02 / June 19. 02
3 Dec 18. 02 / Dec 18. 02
4 June 19. 03 / June 19. 03
5 Dec 18. 03 / Dec 18. 03
6 June 18. 04 / June 18. 04
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Announced volume of additional offering at the auction - KZT500,000,000.00.
The bids are made for the auction on June 31, 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 0.724932% of the
bond face value (6.3/365*42, where 6.3 is coupon rate, 365 - calculation
base, 42 - 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 payment date for the bonds purchased at the auction is July 31,
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, dated June 18, 2001 "On investing the pension
assets into the bonds of local executive body of East-Kazakhstan region".
The additionally offered securities are the government issue securities
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. On June 26, 2001 the additional offer
auction was held at KASE trade system. The issuer was offering
KZT412,130,000.00 worth of bonds. The trade was held at net price of bond.
By the results of the offerings, total actual volume of satisfied bids equaled
35,635 bonds for a face value of the debt at $3,563,500. The issuer raised
KZT499,995,120.98, while planned volume was at KZT500m.
Weighted average yield of VKO bonds at initial offering (calculation based on
the results of two auctions, weighted through the volume of the debt in USD
discounted) equaled 7.9507% APR on semiannual basis, or 8.1098% APR -
on annual basis expressed in currency. (at the KASE the yield calculated on
semiannual basis is used as the main one). The yield for some investors
varied from 6.3005% APR to 8.4969% APR.
By the results of two offerings, 50.5% of the issue, based on purchased
bonds, were bought by the banks of second tier. Using the pension assets
41.1% of bonds has been purchased, and 8.4% has been bought by
brokerage-dealing companies.