Results of initial offering auction of second issue municipal bonds of Atyrau region

/KASE, Sept 25, 01 official press-release of the Exchange/ - On September 25, 2001, initial public offering of second issue inscribed coupon bonds of Atyrau region local executive body will be held in the Trade system of KASE. Only competitive bids were accepted at the auction. Bonds were offered at face value. The coupon rate was a subject of an auction, which will be paid to the bond holders two times a year. Following are the parameters of the issue and complete auction results. ------------------------------------------------------------------------------- Type of securities inscribed coupon bond indexed by the KZT/USD exchange rate fluctuation NIN KZE4KY020023 KASE trade code ARU024.002 Face value, USD 100.00 Auction date Sept 25.01 Settlement date (till 4:00PM ALT) Sept 25.01 Circulation begins on (first accumulated interest accrual date) Sept 26.01 Maturity (planned / actual) Sept 25.03 / Sept 25.03 Circulation term 730 days (2 years) Coupon semiannual Coupon payments dates (planned / actual) 1 March 26.02 / March 26.02 2 Sept 25.02 / Sept 25.02 3 March 26.03 / March 26.03 4 Sept 25.03 / Sept 25.03 Announced issue volume, KZT 1,880,663,000.00 Floated volume, KZT 1,880,663,000.00 Time basis actual/365 Servicing exchange rate (KZT/USD) 147.70 ------------------------------------------ ------------------------------------ Number of participants - KASE members 4 Volume of submitted bids, bonds 30,650 Volume of submitted bids, KZT 452,700,500.00 Demand to supply, % 24.1 Minimum yield on demand, % APR 8.0000 Maximum yield on demand, % APR 9.5000 WA yield on demand, % APR 8.8752 ------------------------------------------ ------------------------------------ Volume of satisfied bids, bonds 2,000 Volume of satisfied bids, USD 200,000.00 Volume of satisfied bids, KZT 29,540,000.00 Specified rate, % APR 8.0000 ------------------------------------------------------------------------------- A total of 12 bids were made at the auction. The banks, which accounted for 80.1% of the demand, expressed the greatest interest in bonds. The clients of the banks (including different investors such as other banks) accounted for 16.3% of the demand and brokerage-dealing companies created 3.6% of demand. After the issuer has conducted a cut-off procedure and thus, set the coupon rate at 8.00% APR, only one bid has been satisfied, which has been submitted by one of the bank clients. By the results of the auction, the issuer was able to float only 0.16% of the issue volume. All settlements regarding the servicing of the bonds are made in Kazakhstani tenges at the KZT/USD official rate of the National Bank of Kazakhstan, effective on the date prior to settlement date.