National Bank notes-42 of #588 issue - floatation results

/IRBIS, Nov 01, 01/ - Today the National Bank of Kazakhstan (NBK) held the 588th auction for floatation of notes with KZT100 par value and 42 days circulation term. Size of satisfaction of incompetitive applications is 60% of specified amount. Auction was conducted with additional issue, realized during the day. The following is complete results of issue and comparison with previous comparable issue. Type of the securities Notes-42 Notes-42 NSIN KZW1KD425885 KZW1KD425703 KASE trade code NTK588.042 NTK570.042 IRBIS registration number 588/N 570/N Par value, KZT 100.00 100.00 Offering date (auction) Nov 01, 01 Sep 12, 01 Settlement date Nov 02, 01 Sep 12, 01 Circulation start date Nov 03, 01 Sep 13, 01 Maturity date Dec 14, 01 Oct 24, 01 Days in circulation 42 42 Planned volume, KZT m 500.0 ( 0) Number of Primary agents 11 (+ 5) Demand, KZT m 1,410.7 (+ 1,251.7) WA yield on demand, % APR 5.76 (- 0.26) Actual volume, KZT m 873.5 (+ 803.9) Cut-off price, % of par value 99.40 ( 0) WA price, % of par value 99.40 ( 0) Maximum yield, % APR 5.23 ( 0) Weighted average yield, % APR 5.23 ( 0) Effective WA yield, % APR 5.35 ( 0) Relative to previous issue of notes (KZW1KD565870, notes 56 from Oct 31,01) demand increased by 1,167.9m tenge (5.8 times), actual volume of satisfied applies - by 863.5m tenge ( 87.4 times), yield of bonds in effective value decreased from 5.49% APR to value shown in the table. Comparison made in the table was deliberate. Despite that previous auction was held almost two months ago, yields of securities didn't change. Significant rise of demand looks logical at the beginning of new month and activity of banks in sector of currency circulation. Banks resources become free. And this factor is felt strongly at the beginning of November especially. The National bank conducted an auction passively not being prone to sterilization of the market, since there is no need in it for today. The issuer only helped those who had free money.