Sovereign bonds of Kazakhstan become more expensive, corporate ones are stable

/REUTERS, Almaty, Oljas Auezov, October 11, 02/ - Prices of Kazakhstan government bonds continues growing this week, and prices of corporate bonds - remained stable after sharp increase last week that was caused by redemption on October 2 of sovereign eurobonds of Kazakhstan for $350m, traders say. Pension funds - the biggest investors at domestic stock market - and banks received as the result of the redemption about $200m that caused significant decrease of yield of all liquid instruments. This week the Ministry of finance of Kazakhstan offered three-year non-indexed bonds for KZT1,050.0m, having cancelled two other auctions on floatation of four- and six-year securities. Yield of three-year bonds equaled to 8.00% APR in comparison with 8.25% at the auction, which was held one month earlier. "Judging on all they do not need money, and they don't want to conduct auctions" - considers a trader of bank ABN AMRO. Banks, which still have excess liquidity, and their clients are interested in municipal borrowing too. Capital of Kazakhstan Astana, which has rating "Ва3" from Moody's, floated on Thursday three- and four-year bonds for the total amount of KZT2.6bn with the yield of 8.31 and 8.50% APR, correspondingly. At this demand for the securities exceeded offer more than four times as much. There were no new offerings at corporate bonds market, however since Friday eurobonds of the state Development bank of Kazakhstan have been included into Kazakhstan stock exchange's (KASE) listing, and now are being traded already with the yield of lower than 7% APR. Message about finding of oil at one more field at Kazakhstan shelf of the Caspian Sea, according to traders' words, did not impact much upon foreign quotations of Kazakhstan bonds. "Prices have moved a bit, but not greatly", - said one of traders. Participants of the market keep from forecasting, assuming, that the situation at GS market will be controlled by the Ministry of finance, and there will not be high activity at corporate securities market. "There is almost no liquidity", - said a trader of a local PAMC (pension assets management company). - "It is not clear what will occur afterwards". [2002-10-11]