Weighted average yield of Eastern-Kazakhstan region municipal bonds by results of initial offering of the whole issue - 8.57% APR

/IRBIS, Aug 7, 01/ - Today the initial issue of municipal bonds of local executive body of Eastern-Kazakhstan region (VKO; KZ7051806A46, KASE trade code - VKU036.001; $100, KZT1bn, June 20.01 - June 18.04, semiannual coupon at 6.30% APR) offering ended at the Kazakhstan Stock Exchange (KASE). Detailed results of two auctions has been published by the KASE. By the results of the offerings, total actual volume of satisfied bids equaled 71,635 bonds for a face value of the debt at $7,163,500. The issuer raised KZT996,048,403.54, while planned volume was at KZT1bn. Face value of KZT debt - KZT1,051,402,750.00, calculated on the basis of actual rates at bonds' payment date.. Weighted average yield of EKR bonds at initial offering (calculation based on the results of three auctions, weighted through the volume of the debt in KZT discounted) equaled 8.5658% APR on semiannual basis, or 8.7506% 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 9.2021% APR. Totally six KASE members participated in purchase of VKO bonds (under satisfied bids). By results of held auctions 60.0% of issue were in secondary tier banks' property. 35.8% bonds were bought at the expense of pension assets, and 4.2% were bought by brokerage-dealers companies. From the beginning of VKO bonds' circulation at secondary exchange market and till today (June 28. 01 - Aug 07. 01) 19 deals were made in sale- purchase KASE sector total - KZT584,586,291.97 (41,960 bonds) this certifies intensive secondary redistribution of securities at the market after initial offering of first part of issue. Meanwhile deals were made exclusively between secondary tier banks. The yield to maturity for some secondary markets deals varied from 8.34 to 8.40% APR and in weighted average totaled 8.36% APR. Net price of bonds displayed weak decline tendency: from 94.7100% (June 29. 01) to 94.6705% (July 24. 01), dirty price - increased: from KZT13,900.30 up to KZT13,976.79 per bond at correspondent dates (8.03% APR)