Demand exceeded supply 2.4 times at specialized trades on initial offering of Development Bank of Kazakhstan CJSC bonds

/IRBIS, March 5, 02/ - Today in trade system of Kazakhstan stock exchange (KASE) there were held specialized trades on initial offering of inscribed coupon indexed non-subordinated bonds of Development Bank of Kazakhstan CJSC (Astana) of the first issue (KZ2CKY05A473; official list of securities of KASE under category "А", BRKZb1, KZT4.5bn; KZT1,000; Feb 15,02 - Feb 15,07; semiannual coupon at 8.5% APR), issued without securing. According to bonds issue terms, their par value is indexed at the change of the exchange rate of Kazakhstan tenge to USD. Indexation mechanism is a multiplication of par value of security by devaluation/revaluation temp ratio (Kd), which is calculated as a ratio of current weighted average exchange rate of USD (Xt) during day session of KASE on a deal making date to analogous rate (151.96 tenge per dollar) on a date of circulation starting (February 15,2002). That is Kd=Xt/151.96. Specialized trades were held in the trade system of KASE from 11:30AM to 5:30PM of Almaty time. The issuer planned to offer at the auction KZT1.5bn of debt in par value. "Clean" price of the bonds (without accumulated interest) was the trades subject expressed in percents to indexed face value of security. Total 12 limited (competitive) bids were submitted to specialized trades from nine members of KASE for acquisition of 3,650,993 bonds for a total amount of KZT3,521,082,356.05. In nominal non-indexed expression of the debt demand volume was estimated at KZT3,650,993,000.00 that exceeds announced volume of floatation 2.43 times. The market (noncompetitive) bids were not submitted by participants. The biggest interest to the bonds was from the side of banks, a share of bids of which accounted for 55.48%. Pension market players accounted for 34.13% of demand volume and 10.39% belonged to brokerage-dealer companies' clients. Other categories of investors didn't take part in floatation. Clean prices of bonds in submitted bids varied from 92.0000% (10.62% APR) to 97.7978% (9.06% APR). Weighted average price of demand was 95.8273% (9.58% APR on semiannual basis). The bonds purchased at the auction should be paid by the buyers until 4:00PM Almaty time on March 06, 2002. The auction results will be announced after holding by the issuer of cut-off procedure, i.e. in the morning on March 06. Let's remind that satisfying of bids for acquisition of bonds of Development Bank of Kazakhstan CJSC by results of held trades will be made at unified price - at cut-off price. The issuer will satisfy all the bids, where the price is greater than the cut-off price, as well as all or part of the bids, where the price is equal to cut-off price. In last case the bids submitted to the trade system of the KASE earlier will have superiority. Cut-off incremental is one ten thousandth of the price.