/IRBIS, Sept 21, 01 official press-release of KASE/ - Kazakhstan Stock
Exchange (KASE) informs that initial public offering of second and third
issue inscribed coupon bonds of Atyrau region local executive body
will be held on September 25, 2001 in the Trade system of KASE.
The issuer is local executive body of Atyrau region (akimat). Financial
consultant of the issuer is DB Securities (Kazakhstan) OJSC (Almaty),
Kazkommerts Securities OJSC (Almaty), Halyk Bank of Kazakhstan OJSC
(Almaty). The legal advisor of the issue and the issuer is White & Case LLP
(Almaty). Financial agent - Kazakhstan Stock Exchange CJSC (Almaty). The
register is maintained by Central Depository of Securities CJSC (Almaty).
The market-maker of bonds is Kazkommerts Securities OJSC.
The bonds were admitted to the Exchange on September 19, 2001 based on
the decision of the Board of KASE and decision of the Exchange Council of
the same date.
Following are the parameters of the issue announced by the issuer and his
financial consultant:
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Type of securities inscribed coupon bond indexed by the
KZT/USD exchange rate fluctuation
Issue number 2 3
NIN KZE4KY020023 KZE4KY050038
KASE trade code ARU024.002 ARU060.003
IRBIS registration number 2/24ARU 3/60ARU
Face value, USD 100.00 100.00
Auction date Sept 25.01 Sept 25.01
Settlement date (till 4:00PM ALT) Sept 25.01 Sept 25.01
Circulation begins on (first
accumulated interest accrual date) Sept 26.01 Sept 26.01
Maturity (planned / actual) Sept 25.03 / Sept 24.06 /
Sept 25.03 Sept 25.06
Circulation term 730 days 1,825 days
(2 years) (5 years)
Coupon semiannual semiannual
Coupon rate fixed fixed
Coupon payments dates (planned / actual) 1 March 26.02 / March 26.02 /
March 26.02 March 26.02
2 Sept 25.02 / Sept 25.02 /
Sept 25.02 Sept 25.02
3 March 26.03 / March 26.03 /
March 26.03 March 26.03
4 Sept 25.03 / Sept 25.03 /
Sept 25.03 Sept 25.03
5 - March 25.04 /
March 25.04
6 - Sept 24.04 /
Sept 24.04
7 - March 25.05 /
March 25.05
8 - Sept 24.05 /
Sept 26.05
9 - March 25.06 /
March 27.06
10 - Sept 24.06 /
Sept 25.06
Register fixing date (coupon, maturity) 3 business days 3 business days
Announced issue volume, KZT 1,880,663,000.00 870,746,576.00
Floated volume, KZT 1,880,663,000.00 870,746,576.00
Time basis actual/365 actual/365
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Coupon accrual begins on the day following the day when the financial agent
transfers the money for purchased bonds into the issuer's account, and
continues throughout the circulation term, including maturity day. The issuer
has the right to call back the bonds by paying the coupon for their actual
outstanding period during the next coupon accrual period.
Bids are to be submitted on September 25, 2001 in the trade system of
KASE from 9:00AM till 3:00PM Almaty time.
Bonds are offered at face value. The coupon rate will be a subject of an
auction, which is entered into the trade system of the KASE in percents of
the face value expressed in annual percentage rates. The number of bonds
is stated at their face value.
Bids are satisfied by the results of the auction and after the cut-off
procedure conducted by the issuer in increments of one thousandth of the rate.
Bids are cut if the yields shown there exceed the cut-off rate stated by the
issuer. Bids with the yields that are lower or equal to the cut-off yield are
satisfied at a single rate, which is equal to the cut-off rate. Only
competitive bids are accepted at auction.
The bids can be submitted only by members of KASE of category "K" (right
to participate in trades in government securities, which are admitted to the
Exchange). Investors may submit applications through brokerage-dealing
companies, which are the KASE members in this category. Complete list of
KASE members holding category "K" is published on
(
http://www.kase.kz/KASEMembers/) web site of the Exchange.
All settlements regarding the purchasing (including at the auction), servicing
and repayment of the bonds are made in Kazakhstani tenges at the
KZT/USD official rate of the National Bank of Kazakhstan, effective on
the dates prior to settlement dates. Investors will pay for the bonds
purchased at the auction through organizations, which have accounts in
Central Depository of Securities CJSC (Almaty).
Municipal bonds could be purchased by Pension Assets Management
Companies (PAMC) using the assets of Accumulative Pension Funds only
with the approval of the Stock Market Regulatory Department (former
National Securities Commission of Kazakhstan, NSC), which is given for
each separate issue. Until now, KASE does not have any documents
regarding the second and third issue bonds of Atyrau region. Additional
information will be given on the decision of the Department (if one will be
made).
Issue, circulation and redemption procedures of the bonds are regulated by
the "Issue, floatation, circulation, repayment and servicing rules for
mid-term currency government securities of the local executive
bodies", which was approved by the resolution #1139 of the Government of
Kazakhstan, dated September 4, 2001.
The securities being offered are the government securities, which are
issued in non-documentary form to receive financing resources for 4
Regional Investment Projects (RIP), which will be implemented in the region
by the issuer in compliance with Loan granting rules of the Government of
Kazakhstan and local executive bodies of Kazakhstan, approved by the
resolution #1440 of Government of Kazakhstan, dated September 22, 2000,
as well as by the resolution #1030 of the Government of Kazakhstan "On
regional investment program and borrowings of local executive body of
Atyrau region", dated August 3, 2001. The RIP includes following projects:
- Providing gas supply to the settlements (contractor Atyraugasstroi LLP,
1998-2001, total financing - KZT6,109m);
- Construction of water purification mini facilities (Rytas CJSC, 2001,
KZT431m);
- Road construction (Oblys Joldary HME, 1998-2001, KZT7,567m);
- Small and mid-sized business support, financing of final borrowers
through the accounts of borrower-banks (2000-2001, KZT1,914m).
The projects of the Atyrau region RIP passed the expert examination at the
Ministry of Finance and Ministry of Economy and Trade of Kazakhstan.
Based on presented conclusions of the ministries, there are no remarks on
this project. More detailed characteristics of the projects and RIP will be
given in news blocks of agency IRBIS (Almaty).
First issue of Atyrau region municipal bonds ($100, KZT650m, July 10, 00 -
July 10, 01, semiannual coupon at 10.99% APR) was floated completely and
paid out in full and repaid by the issuer in a strict accordance with the
servicing and repayment schedule.