/KASE, Nov 05, 01 official press-release of Exchange/ - Kazakhstan Stock
Exchange (KASE) informs that initial additional offering of second and
third issue inscribed coupon bonds of Atyrau region local executive
body will be held on November 08, 2001 in the Trade system of KASE. It is
the second additional offering made by the issuer.
The issuer is local executive body of Atyrau region (akimat). Financial
consultants of the issuer are DB Securities (Kazakhstan) OJSC (Almaty),
Kazkommerts Securities OJSC (Almaty), Halyk Bank of Kazakhstan OJSC
(Almaty). The legal advisor of the issue and the issuer is White & Case LLP
(Almaty). Financial agent of the issuer is the Kazakhstan Stock Exchange
CJSC (Almaty). The register on bonds is maintained by the Central
Depository of Securities CJSC (Almaty). The market-maker of bonds is
Kazkommerts Securities OJSC.
On June 08, 2001. international rating agency Moody's Investors Service,
Inc gave Atyrau region ratings of issuer of debt obligations in foreign and
national currency at the level "B1" with positive forecast.
The bonds were admitted to the Exchange on September 19, 2001 based on
the decision of the Board of KASE and decision of the Exchange Council of
the same date.
Following are the parameters of the issue announced by the issuer and his
financial consultants and also main parameters of additional issue:
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Type of securities inscribed coupon bond indexed by the
KZT/USD exchange rate fluctuation
Issue number 2 3
NIN KZE4KY020023 KZE4KY050038
KASE trade code ARU024.002 ARU060.003
IRBIS registration number 2/24ARU 3/60ARU
Face value, USD 100.00 100.00
Circulation begins on
(first accumulated interest
accrual date) Sept 26.01 Sept 26.01
Maturity Sept 25.03 / Sept 24.06 /
(structure/actual) Sept 25.03 Sept 25.06
Circulation term 730 days 1825 days
(2 years) (5 years)
Coupon semiannual semiannual
Coupon rate 8.00% APR 8.60% APR
Coupon payments dates March 26.02/ March 26.02/
(planned / actual) 1 March 26.02 March 26.02
2 Sept 25.02 / Sept 25.02 /
Sept 25.02 Sept 25.02
3 March 26.03 / March 26.03 /
March.03.03 March 26.03
4 Sept 25.03 / Sept 25.03 /
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
Register fixing date 3 working days 3 working days
(coupon, maturity)
Announced issue volume, KZT 1,880,663,000.00 870,746,576.00
Floated volume, KZT actual/365 actual/365
--------------------------------- ------------------ ----------------
Auction date Nov 08.01 Nov 08.01
Settlement date (till 4:00PM ALT) Nov 09.01 Nov 09.01
Accumulated interest by
auction date 0.986301% 1.060274%
Volume of additional issue, tenge 695,943,000.00 207,262,576.00
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Coupon accrual begins on the day following the day when the financial agent
transfers the money for purchased bonds into the issuer's account, and
continues throughout the circulation term, including maturity day. The issuer
has the right to call back the bonds by paying the coupon for their actual
outstanding period during the next coupon accrual period.
Applications are to be submitted in the trade system of KASE from 9:00AM
till 12:00AM Almaty time.
Clean price of bond without accumulated interest will be a subject of an
auction, which is entered into the trade system of the KASE as a price in
percents of the face value expressed with four figures after the decimal. The
number of bonds is stated at their face value.
Bids are satisfied by the results of the auction and after the cut-off
procedure conducted by the issuer in increments of one thousandth of clean
price. Bids are cut if the prices shown there are below the cut-off price
stated by the issuer. Bids with the prices that are higher or equal to the
cut-off price are satisfied at an applied price. The issuer has a right to
satisfy only a part of bids, price in which is equal to cut-off price. In this
case bids are satisfied according to given order.
Only competitive bids are accepted at auction.
Bids can be submitted only by members of category "K" of KASE (right to
participate in trades in government securities, which are admitted to the
Exchange). Investors may submit applications through brokerage-dealing
companies, which are the KASE members in this category. Complete list of
KASE members holding category "K" is published on
(
http://www.kase.kz/KASEMembers/) web site of the Exchange.
According to resolutions of the Board of the National bank of Kazakhstan
"On investing of pension assets in bonds of local executive body of
Atyrau region with maturity in year 2003" and "On investing of pension
assets into bonds of local executive body of Atyrau region with
maturity in year 2006", kazakhstani pension assets management
companies and State accumulating pension fund (Almaty) are allowed to
acquire bonds of Atyrau region of mentioned issues for pension assets.
All settlements regarding the purchasing (including at the auction), servicing
and repayment of the bonds are made in Kazakhstan tenges at the
KZT/USD official rate of the National Bank of Kazakhstan, effective on
the dates prior to settlement dates. Investors will pay for the bonds
purchased at the auction through organizations, which have accounts in
Central Depository of Securities CJSC (Almaty).
As a result of the first issue of bonds on September 25 of current year and
the first additional issue on November 02 the issuer was able to sell 80,000
bonds of the second issue (63.1% of planned volume of attracting money) at
maturity yield of securities 8.00-9.20% APR (weighted average-8.39%APR)
and 44,800 bonds of the third issue (73.3% of planned amount) at yield for
buyer 8.60-9.10%APR (weighted average-8.80% APR).
Issue, circulation and redemption procedures of the bonds are regulated by
the "Issue, floatation, circulation, repayment and servicing rules for
mid-term currency government securities of the local executive
bodies", which was approved by the resolution #1139 of the Government of
Kazakhstan, dated September 4, 2001.
The securities being offered are the government securities, which are
issued in non-documentary form to receive financing resources for 4
Regional Investment Projects (RIP), which will be implemented in the region
by the issuer in compliance with Loan granting rules of the Government of
Kazakhstan and local executive bodies of Kazakhstan, approved by the
resolution #1440 of Government of Kazakhstan, dated September 22, 2000,
as well as by the resolution #1030 of the Government of Kazakhstan "On
regional investment program and borrowings of local executive body of
Atyrau region", dated August 3, 2001. The RIP includes following projects:
- Providing gas supply to the settlements (contractor Atyraugasstroi LLP,
1998-2001, total financing - KZT6,109m);
- Construction of water purification mini facilities (Rytas CJSC, 2001,
KZT431m);
- Road construction (Oblys Joldary HME, 1998-2001, KZT7,567m);
- Small and mid-sized business support, financing of final borrowers
through the accounts of borrower-banks (2000-2001, KZT1,914m).
The projects of the Atyrau region RIP passed the expert examination at the
Ministry of Finance and Ministry of Economy and Trade of Kazakhstan.
Based on presented conclusions of the ministries, there are no remarks on
these projects. More detailed characteristics of the projects and RIP was
given in news blocks of agency IRBIS (Almaty).
First issue of Atyrau region municipal bonds ($100, KZT650m, July 10, 00 -
July 10, 01, semiannual coupon at 10.99% APR) was floated completely and
paid out in full and repaid by the issuer in a strict accordance with the
servicing and repayment schedule.