/SUPPLEMENTED/ Development bank of Kazakhstan will issue eurobonds to the amount of $100m or EUR100m

/Almaty bureau REUTERS, Oljas Auezov, September 20, 02, expected dates of determining of issue currency and coupon rate, information about primary floatation in Kazakhstan and about expected tax concessions have been added/ - the State Development bank of Kazakhstan will issue five-year eurobonds to the amount of $100m or EUR100m with fixed rate right after redemption of eurobonds of Kazakhstan, which is planned for October 2, informed the bank on Friday. The bank's managing director Askar Sembin said Reuters at presentation in Alma-Ata that issue currency and the rate of eurobonds - debut for the bank - will be known during collection of bids from investors, and it will follow the road-show, which will begin in the next week in Europe. Lead-manager of the issue UBS Warburg informed before that meetings with European investors will begin in London on September 23. According to the words of a representative of Bracewell & Patterson company, which is the issue's juridical consultant, this process may take about two or three weeks. The bank's shareholders approved in the beginning of September the mid-term program of borrowings for 2002-2005, which envisages eurobonds issue to the total amount of $400m. Participants of the market forecasted that yield of 5-year eurobonds of development bank will equal to 7.0-7.5%APR. In their opinion the half of the forthcoming issue will be offered at domestic market. By the estimation of the National Bank, as the result of redemption of sovereign eurobonds of Kazakhstan in the amount of $350m, about $210m will be given to Kazakhstan securities holders. Arman Dunayev, the bank's President, deputy minister of economics and budget planning said during his participation at the presentation that the Ministry of justice of Kazakhstan has already registered regulation of the National Bank's governing body, which increased limit of pension funds' investments - the major investors at domestic market - into the bonds of development bank up to 10% from 5%. According to Dunayev's words, pension funds will be able to take part in primary floatation of the bank's eurobonds for they will be included into the listing of Kazakhstan stock exchange. He added that now the Government examines the possibility of creating preferential tax treatment for the bank's bondholders by means of preparation of the law about agent bonds of financial institutes with 100% state property. "May be by the date of the first coupon payment in April the law will pass", - said Dunayev. Development bank of Kazakhstan, shareholders of which, together with the Government, are local executive bodies of all Kazakhstan oblasts, was founded in last year in order to finance large mid- and long-term projects in non-raw stuff sector of economics. The bank, the capital and equity of which as of July 1 of 2002 equaled, correspondingly, to KZT30.5bn (about $200m) and KZT35.2bn, was assigned ratings "ВВ" by S&P agency and "ВВ-" - by Fitch. On Thursday Moody's agency increased Kazakhstan rating to investment one - "Baa3" from "Ва2". Before Fitch and S&P assigned to the country ratings on the level "ВВ". [2002-09-20]