MEKKAM-12 of the Ministry of Finance of Kazakhstan issue #74 - offering results

/IRBIS, Nov 08, 01/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the 74th auction for MEKKAM-12 floatation (365 days). Size of satisfaction of incompetitive applications is 50% of specified amount. Earlier Ministry of finance planned to offe semiannual MEKKAM-6, but yesterday issuer changed its plans. Type of the securities МЕККАМ-12 МЕККАМ-12 NSIN KZK1KY010745 KZK1KY010737 KASE trade code MКM012.074 MКM012.073 IRBIS registration number 74/12 73/12 Par value, KZT 100.00 100.00 Issuance date Nov 08,01 Sept 18,01 Payment date Sept 09,01 Sept 19,01 Circulation start date Sept 10,01 Sept 20,01 Maturity date Nov 09,02 Sept 19,02 Days in circulation 365 days 365 days Planned volume, mln KZT 300.0 (-100.0) Number of primary dealers 5 ( 0) Demand, mln KZT 207.8 (- 40.4) Max. WA yield on demand, % APR 7.40 (- 0.13) Actual volume, mln KZT 101.2 (+ 81.2) Cut-off price, KZT 93.63 ( 0) WA price, KZT 93.63 ( 0) Max. yield, % APR 6.80 ( 0) WA yield, % APR 6.80 ( 0) WA effective yield, % APR 6.80 ( 0) The Ministry of Finance informs that non-residents did not submit any bids at the auction. Again demand was too weak. This time IRBIS analysts indicate two reasons. First is the deficiency of money, caused by non significant volume of payment of GS and also active buying up by banks, at the very beginning of November. Exactly, this reason did not allow Ministry of finance to float on Tuesday (MEOKAM-48), National bank could not float on Wednsday (notes- 77). Second is today's two auctions on initial additional floating of municipal bonds of Atyrau region (second and third issue). According to results of these auctions, banks preferred municipal bonds as more benefitial and applied high demand at their offering. But obviously, there was lack of money for MEKKAM. Low rates on issued state debt were formed in Summer and Spring, when Ministry of finance was ot interested in domestic market. Now due to issuer's attitude, the situation changed. In order to intensify its debt Ministry of finance should keepincreasing of its bonds' investment attractivness.