MEKKAM-12 of the Ministry of Finance of Kazakhstan issue #73 - offering results

/IRBIS, Sept 18, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 73rd auction for MEKKAM-12 floatation (365 days). Size of satisfaction of incompetitive applications is 50% of specified amount. Following are complete offering results. Since the last time MEKKAM-12 had been offered on May 10, 2001 (yield at 7.30% APR), no comparison with the previous issue is given in the table. Type of the securities MEKKAM-12 NSIN KZK1KY010737 KASE trade code MKM012.073 IRBIS registration number 73/12 Par value, KZT 100.00 Issuance date Sept 18, 01 Payment date Sept 19, 01 Circulation start date Sept 20, 01 Maturity date Sept 19, 02 Days in circulation 365 Planned volume, mln KZT 400,0 Number of primary dealers 5 Demand, mln KZT 248.1 Max. WA yield on demand, % APR 7.53 Actual volume, mln KZT 20.0 Cut-off price, KZT 93.63 WA price, KZT 93.63 Max. yield, % APR 6.80 WA yield, % APR 6.80 WA effective yield, % APR 6.80 The Ministry of Finance informs that non-residents did not submit any bids at the auction. Demand for these securities was very low and it should be admitted that probing the market by the Ministry of Finance for its reaction to the longest MEKKAM gave a negative result. In the opinions of the IRBIS analysts, these securities do not match any of existing investment schedules. They are too short (and respectively have low yields) for the PAMC, and too long for the banks, which prefer to use the notes of the National Bank to regulate their liquidity. However, the issuer did not go to an increase in the returns and preferred to limit itself to a symbolic borrowing volume.