Kazakhstani PAMC are virtually banned from purchase of euronotes of TuranAlem Finance B.V.

/IRBIS, Aug 2, 01/ - Absence of deals at KASE over relatively profitable first issue euronotes of TuranAlem B.V. (The Netherlands), (XS0131688227; official KASE list of securities, "A" category, BTASe1, $100 mln, June 28. 01 - June 28. 04, semiannual coupon 11,50% APR current market income - 11.91/10.66% APR) since moment of KASE listing procedure forced IRBIS agency to find out reasons of this phenomena. Now pension assets management companies which are main buyers of these securities were deprived of opportunity to buy BTASe1 in small volumes on the account of pension assets as well as proper means despite of high investment attractiveness. According to last amendments for Manual "Prudential norms for enterprises managing pension assets investments" dated Nov 15 of 2000 #87 (Manual), total size of separate PAMC's investments in securities of one issuer - not STB, should not exceed the quarter of this issuer's capital. At the same time the size of company's private capital which was the guarantee for bonds issue (BTASe1 were issued under guarantee of Bank TuranAlem OJSC) is not included, at least nothing was written in manual regarding this point. As it is known issuer of mentioned eurobonds is TuranAlem Finance B.V. - the company which was established by the decree of Bank TuranAlem OJSC Board (Almaty) dated March 16, 2001. Its authorized capital - EUR90 th, of which EUR18 th have been already paid. Bank TuranAlem acted as a sole founder. Basing upon size of authorized paid capital of TuranAlem B.V. equal to private capital the maximal permitted volume of euronotes of one PAMC totals wretched sum at EUR 4.5 th or $4 th under effective rate. Some PAMC have already bought BTASe1 in OTC market at initial offering in larger volumes and have to sale these securities in the market according to requirements of the Manual. Otherwise they will be punished in the form of penalties. At the same time employees of Kazakhstani NSC which is not an independent legal entity and is under National Bank's jurisdiction, state that exclusion of private capital of company-guarantee will be corrected in future. Correspondent amendments to the Manual will be included at the session of National Bank Board which will take place after NSC reorganization. And in case of positive result the new wording will be submitted to Ministry of Justice for registration. But first of all they need time for all this which may exceed over the above mentioned three months. As a result APF portfolios papers will be excluded and that is negative for income of these portfolios. Before new manual establishment at pension market of Kazakhstan there had already been precedent similar to euronotes of TuranAlem Finance B.V. - euronotes of Kazkommerts International B.V. (the Netherlands) have been issued under complete guarantee of KAZKOMMERTSBANK OJSC (Almaty). These high income bonds were in APF portfolios till their maturity due to established restriction which was not effective before. We should mark that PAMC hardly admitted restriction regarding BTASe1, because there is a deficit of high income instruments, characterized by low degree of risk like notes of TuranAlem Finance B.V. at Kazakhstani market. According to IRBIS now Kazakhstani PAMC are able to buy only $50 mln of face value of TuranAlem B.V. first issue debt, minimum at 10.6% APR to currency maturity.