Auction for additional offering of municipal bonds of Eastern- Kazakhstan region was considered invalid

/KASE, Aug 14, 01/ - Today in the trade system of the Kazakhstan Stock Exchange (KASE) the auction for initial additional offering of first issue inscribed coupon bonds (KZ7051806A46, KASE trade code - VKU036.001; $100, KZT1bn, June 20, 01 - June 18, 04, semiannual coupon at 6.30% APR) of local executive body of Eastern-Kazakhstan region was held. Announced volume of additional offering at this auction was set by the issuer at KZT3,946,717.45. The bids were accepted from 9:00AM till noon Almaty time. The bonds were floated by the issuer at the prices shown in the bids. Only competitive bids have been accepted at the auction. A total of 3 bids have been made at the auction. Of this number only 2 bids for buying 5,300 bonds amounting to $492,986.85 were active by the closing of the auction. At current official KZT/USD rate (KZT147.10 = $1) it corresponds to KZT72,518,365.53. Thus, demand exceeded the offer 1,837.4 times at the auction. The banks expressed the most interest in buying the bonds at the auction, with their proportion of bids reaching 94.3% of total demand. The proportion of bids submitted by brokerage-dealing companies and their clients equaled 5.7%. No bids were submitted to buy the bonds using the pension assets. Clean prices varied from 92.0000% to 92.2980% of the bond face value in submitted bids. Weighted average price for all the demand equaled 92.0503%. The minimum yield to maturity of the bonds in submitted bids (semiannual basis, in parentheses - annual basis) - 9.19 (9.41)% APR, maximum - 9.57 (9.80)% APR, weighted average - 9.5495 (9.7774)% APR. The auction was declared invalid. The reason is that the issuer had not presented the documents regarding the cut-off of submitted bids by 4:00PM Almaty time, the deadline to make the settlement, to the KASE. The documents were not delivered to the Exchange till the end of the day either. It is not quite clear why the issuer behaved like this.