National Bank notes-84 of #630 issue - floatation results

/IRBIS, Feb 07, 02/ - Today the National Bank of Kazakhstan (NBK) held the 630th auction for floatation of notes with KZT100 par value and 84 day circulation term. Size of satisfaction of noncompetitive applications is 50% of specified amount. Auction was conducted with extra floatation, realized during the day. Following are complete offering data and comparison with previous similar issue. --------------------------------------------------------- Type of the securities Notes-84 Notes-84 NSIN KZW1KD846304 KZW1KD846262 KASE trade code NTK630.084 NTK626.084 IRBIS registration number 630/N 626/N Par value, KZT 100.00 100.00 Offering date (auction) Feb 07,02 Jan 31,02 Settlement date Feb 08,02 Feb 01,02 Circulation start date Feb 09,02 Feb 02,02 Maturity date May 03,02 Apr 26,02 Days in circulation 84 84 Planned volume, KZT m 500.0 ( 0) Number of Primary agents 8 (- 3) Demand, KZT m 1,463.1 (- 1,916.4) WA yield on demand, % APR 7.40 (+ 0.89) Actual volume, KZT m 1,047.6 (- 1,818.2) Cut-off price, % of par value 98.64 ( 0) WA price, % of par value 98.64 ( 0) Maximum yield, % APR 5.97 ( 0) Weighted average yield, % APR 5.97 ( 0) Effective WA yield, % APR 6.10 ( 0) --------------------------------------------------------- Relative to previous floatation of notes (KZW1KD566290, notes-56 dated Feb 06,2002) demand increased by KZT1,266.1m (7.4 times), actual volume of satisfied bids - by KZT1,026.8m (50 times), and bonds yields in effective terms increased from 5.56% APR to the value shown in the table. The National Bank tries to sterilize the market with any methods. However, at that it avoids increasing of yield of its bonds. Two auctions have been added to announced on a week two ones. In repo sector the National Bank attracts short money at rates, which could be lower taking into account quotations of other participants of the market. In opinion of IRBIS specialists, being held sterilization concerns mainly pension funds money. But it indirectly affects banks behavior. Very low repo rates caused by excessive tenge supply by pension market subjects are able to destabilize situation in currency circulation sector provoking speculations and also "pull aside" banks money from financing and investment into government and corporate securities. The latter is dangerous by demand decrease for MEKAM as a consequence growth of debt servicing value that is unprofitable for the Ministry of finance taking into consideration huge debt load on the budget during current year. Therefore, with its behavior in open market the National Bank tries to provide balance of rates in conditions of increasing tenge liquidity.