On August 14 additional offering auction of first issue municipal bonds of Eastern Kazakhstan region will be held at KASE

/KASE, Aug 08, 01, official press-release of the Exchange/ - The Kazakhstan Stock Exchange (KASE) informs, that on August 14, 2001 the additional offering auction of the first issue of coupon bonds of local executive body of Eastern-Kazakhstan region (VKO, first issue KZ7051806A46, trade code KASE - VKU036.001; $100, KZT1bn, June 20. 01 - June 18. 04, semiannual coupon 6.30% APR) 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. Announced volume of additional offering at the auction - KZT3,946,717.45. The bids are made for the auction on August 14, 2001 in the Trade system of the KASE from 9:00AM to noon Almaty time. This time the bonds are offered at the prices in submitted bids at a fixed coupon rate. The subject of trade is 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 decimal points. Accumulated interest on the offering date is 0.966575% of the bond face value (6.3/365*56, where 6.3 is coupon rate, 365 - calculation base, 56 - 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. 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 August 14, 2001 till 4:00PM Almaty time. By the results of all primary offerings and additional offerings VKU036.001 which were held up today, total actual volume of satisfied bids equaled 71,635 bonds for a face value of the debt at $7,163,500.00. The issuer raised KZT996,048,403.54, while planned volume was at KZT1bn. Face value of KZT debt, calculated at actual rate - 1,051,402,750.00. Weighted average yield of VKO bonds at initial offering (calculation based on the results of three auctions, weighted through the volume of the debt in USD discounted) equaled 8.5658% APR on semiannual basis. The yield for some investors varied from 6.3005% APR to 9.2021% APR. Totally six members of KASE participated in VKO bonds purchasing. By the results of all held auctions, 60.0% of the issue, based on purchased bonds, were bought by the banks of second tier. At the expense of pension assets 35.8% of bonds has been purchased, and 4.2% has been bought by brokerage-dealing companies.