Demand exceeded supply 2.4 times at specialized trades on initial offering of Development Bank of Kazakhstan CJSC bonds
05.03.02 00:00
/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.