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

/KASE, Sept 25, 01 official press-release of the Exchange/ - On September 25, 2001, initial public offering of third 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 KZE4KY050038 KASE trade code ARU060.003 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) 24.09.06 / 25.09.06 Circulation term 1,825 days (5 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 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 Announced issue volume, KZT 870,746,576.00 Floated volume, KZT 870,746,576.00 Time basis actual/365 Servicing exchange rate (KZT/USD) 147.70 ------------------------------------------ ------------------------------------ Number of participants - KASE members 3 Volume of submitted bids, bonds 8,600 Volume of submitted bids, KZT 127,022,000.00 Demand to supply, % 14.6 Minimum yield on demand, % APR 8.6000 Maximum yield on demand, % APR 12.0000 WA yield on demand, % APR 10.7279 ------------------------------------------ ------------------------------------ Volume of satisfied bids, bonds 100 Volume of satisfied bids, USD 10,000.00 Volume of satisfied bids, KZT 1,477,000.00 Specified rate, % APR 8.6000 ------------------------------------------------------------------------------- A total of 5 bids were made at the auction. The banks, which accounted for 69.8% of the demand, expressed the greatest interest in bonds. The brokerage-dealing companies created 30.2% of demand. Other investors did not participate at the offering. After the issuer has conducted a cut-off procedure and thus, set the coupon rate at 8.60% APR, only one bid has been satisfied, which has been submitted by a brokerage-dealing company. By the results of the auction, the issuer was able to float only 0.17% 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.