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

/KASE, Aug 7, 01, official press-release of the Exchange/ - On August 7, 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 - KZT500m. 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 20.06.01 Maturity (nominal / actual) 18.06.04 / 18.06.04 Circulation term 1095 days (3 years) Coupon type semiannual Coupon rate, % APR 6,30 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 Time basis for payments actual/365 --------------------------------------------- ------------------------------- ADDITIONAL OFFERING --------------------------------------------- ------------------------------- Auction date 07.08.01 Settlement date 07.08.01 Offering volume 500,000,000.00 Accrued interest, % of face value 0.845753 Servicing exchange rate (KZT/USD) 147.05 --------------------------------------------- ------------------------------- DEMAND PARAMETERS --------------------------------------------- ------------------------------- Number of participants - KASE members 4 Volume of submitted bids, bonds 42,800 Volume of submitted bids, KZT (discount) 589.014.671.20 Bids-ask ratio, % 117.8 Bid prices, % of face value (net) minimal 92.1200 maximal 93.2980 weighted average 92.7425 Bids yield, % APR (semiannual basis / annual basis) minimal 9.0002 / 9.2026 maximal 9.5001 / 9.7256 weighted average 9.2352 / 9.4483 --------------------------------------------- ------------------------------- RESULTS OF ADDITIONAL OFFERING --------------------------------------------- ------------------------------- Volume of satisfied bids, bonds 36,000 Volume of satisfied bids, KZT (discount) 496.053.282.55 Prices, % of face value (net) cut-off 92.8200 weighted average 92.8590 Coupon yield to maturity, % APR (semiannual / annual basis maximal 9.2021 / 9.4137 weighted average 9.1856 / 9.3965 ------------------------------------------------------------------------------ Total of 7 bids have been put at the auction. The banks expressed the most interest in buying the bonds and accounted for 64.3% of the demand. The proportion of bids submitted using the pension assets equaled 35.7%. No brokerage companies submitted bids. After the cut-off procedure only 5 bids have been satisfied fully (three members ). By the results of the auction, 30.6% of the floatation volume was purchased by accumulative pension funds, and another 69.4% by second tier banks. The issuer floated 99.2% of the planned volume of issue at discount cost or 105.9% - allowing for face value at rate of service, at date of payment.