National Bank notes-56 of #587 issue - floatation results

/IRBIS, Oct 31, 01/ - Today the National Bank of Kazakhstan (NBK) held the 587th auction for floatation of notes with KZT100 par value and 56 day circulation term. Size of satisfaction of incompetitive applications is 60% of specified amount. This auction has not been announced by the issuer at the beginning of the week, therefore it was not entered into the floatation and repayment schedule of this week which was published by IRBIS on October 29. Following are complete offering data and comparison with previous similar issue. Type of the securities Notes-56 Notes-56 NSIN KZW1KD565870 KZW1KD565763 KASE trade code NTK587.056 NTK576.056 IRBIS registration number 587/N 576/N Par value, KZT 100.00 100.00 Offering date (auction) Oct 31, 01 Oct 01, 01 Settlement date Nov 01, 01 Oct 02, 01 Circulation start date Nov 02, 01 Oct 03, 01 Maturity date Dec 27, 01 Nov 27, 01 Days in circulation 56 56 Planned volume, KZT m 500.0 ( 0) Number of Primary agents 7 (+ 5) Demand, KZT m 242.8 (+ 18.0) WA yield on demand, % APR 6.37 (+ 0.93) Actual volume, KZT m 10.0 (- 190.0) Cut-off price, % of par value 99.18 ( 0) WA price, % of par value 99.18 ( 0) Maximum yield, % APR 5.37 ( 0) Weighted average yield, % APR 5.37 ( 0) Effective WA yield, % APR 5.46 ( 0) Relative to last notes floatation (KZW1KD565870, notes-35 dated Oct 28, 01) demand declined by KZT852.0m (4.5 times), actual volume of satisfied applications - at KZT726.5m (73.7 times), bonds yield in effective terms increased from 5.24% APR up to the value shown in the table. Actually the National Bank made an attempt to clean up the market and draw the funds of the banks away from the dollar, since its exchange rate hiked today. However, results of the offering imply that the attempt was not a success. Demand was low and quite tough in terms of prices. The issuer did not demonstrate a resistance, leaving the yields of the notes at previous level which indicates that there are no acute problems either. The situation on the market is under a full control of the National Bank and no excess of funds is observed on the market.