Results of Kazakhstan Temir Joly NSE second issue bonds initial offering

/IRBIS, Oct 3, 01/ - On September 28, 2001 the auction for offering of second issue inscribed coupon bonds of Kazakhstan Temir Joly NSE (Astana; KZ2EUY03A368, $100, $30m, July 10.01 - July 10.04, semiannual coupon at 8.0% APR) ended at the Kazakhstan Stock Exchange (KASE). The bonds were floated from July 12 through September 30 in several stages. The first stage - is the auction of the Exchange, which was held on July 12, 2001 using a classic private offering. Here, the issuer floated 31.8% of announced issue volume ($9,530 th. at face value). The second stage is the opening of additional offering auction in the trade system of the KASE after 3:00PM on July 12, where uninterrupted time auction was used as an open trades, with the seller of bonds being the agent of Kazakhstan Temir Joly NSE - Fondovyi servis CJSC (Almaty), and buyers being freed from paying commissions to the Exchange. This auction closed on July 13, and it resulted in $304 th. worth of bonds floated at face value. The third stage - similar auction held as open trades from July 17 through 20 on the same terms but with the payments made on July 20. Another 5,100 bonds have been floated here. The fourth stage was an another additional offering auction in the trade system of the KASE from July 26 through 28. The method was similar to two previous auction with only difference being the settlements made on Fridays of the week when the deals were made in. The auction allowed the issuer to float another 107,400 bonds on acceptable terms. The last deal was made on the market on September 27. By the results of all auctions a total of 22 deals were made amounting to KZT3,034,015,452.99. It was this amount that Kazakhstan Temir Joly NSE was able to raise by selling its bonds at the Exchange. A total of 210,840 securities were floated for $21,084,000 at face value, which is 70.28% of announced issue volume. All deals were made at clean price that varied from 96.3826% to 97.5221% and weighted average price has settled at 97.0350% of the face value. Yield to maturity varied from 8.9903% to 9.5000% APR and by the results of the offerings equaled (weighted based on volumes in KZT) 9.1905% APR on average. The last deals were made at the lowest prices, which allowed the issuer to receive a good demand in the last 10-day period of September. All categories of investors participated in TMJLb2 offerings at the KASE. By the results of the auctions 74.7% of the bonds were purchased using the assets of accumulative pension funds, 9.5% by the banks, 0.1% - brokerage-dealing companies themselves, and 15.7% by the clients of brokers. Secondary circulation of TMJLb2 at KASE was opened on July 24. Despite the fulfillment of its market-maker obligations by Fondovyi servis CJSC, no deals have been made in these bonds at the Exchange yet.