Issue, circulation and maturity terms of bonds of Kazakhstan Mortgage Company CJSC of the first issue

/IRBIS, November 18, 02/ - Following is the characteristics of bonds of Kazakhstan Mortgage Company CJSC (Almaty) of the first issue published in connection with their admittance into Kazakhstan Stock Exchange's (KASE) official "A" listing category. -------------------------------------------------------------------------------- Type of securities: inscribed coupon bonds Securing: secured Issue currency: Kazakhstani tenge (KZT) Servicing currency: Kazakhstani tenge (KZT) Credit ratings of issue: absent Credit ratings of issuer: absent National identification number: KZ2CKY03A676 Issue number in state register: А67 Register maintenance: Fondoviy center LLP (Almaty) Date of issue registration: February 24, 02 Face value in issue currency: 10,000.00 Issue volume in issue currency: 1,500,000,000.00 Issue volume in securities: 150,000 Date of circulation start (issue date): November 10, 02 Floatation term: 2 year since state registration date of bonds issue Circulation term: 3 years Maturity date: November 10, 05 Interest rate floating. Depends on inflation level (more detailed - below) Dates of interest payment May 10 and November 10 of each year Time basis at all calculations 30/360 Register fixation term at coupon payment: 30 days before payment date Register fixation dates at coupon payment: April 10 and October 10 of each year Register fixation term at maturity: 30 days before maturity date Register fixation date at maturity: October 10 of 2005 Underwriters of the issue: KIB ASSET MANAGEMENT Ltd LLP (lead-manager). Bank CenterCredit OJSC (co-manager) Auditor (pawn condition control) ELTAL-UVEMAN consulting LLP (Almaty) Bondholders' representative Halyk Bank of Kazakhstan OJSC (Almaty) Date of admittance in trade lists of KASE: November 18, 02 Date of first trades: Will be determined later Trade code of KASE: KZIKb1 Accuracy of price change at quoting: 4 decimal figures Market-maker at KASE: KIB ASSET MANAGEMENT Ltd LLP -------------------------------------------------------------------------------- Bondholders' representative is not affiliated person of the company, auditor, registrar and other persons, which take part in the process of preparation, issue, floatation and redemption of bonds. The representative carries out its obligations exceptionally for the sake of bondholders. The Representative's authorities appear owing to power of attorney. Each bondholder must give power of attorney addressed to the Representative, which gives hit the right for acting on behalf of bondholders in accordance with the power of attorney. The power of attorney is to be made in accordance with the requirements of legislation and applications #1 и #2 to the bonds issue terms. Each new bondholder gives the power of attorney on behalf of himself to the Representative. Ways of securing of obligations fulfillment on bonds The bonds have been secured by the pawn of the company's movables - purchased from banks-partners of the requirement rights прав on borrowers; credit obligations (certified by means of mortgage certificate purchasing on the loan or signing of assignment agreement), and also securities, which are acceptable for refinancing by the National Bank of Kazakhstan (hereinafter - "securities"). Pawn agreement is made between the company and bondholders, on behalf and on the instructions of whom the Representative acts. Bondholders realize their rights of pawn holders through the Representative. The company accounts for preparation of information on the pawn content, including making of changes and additional and their including into the pawn's register. Operation of substitution, retirement and replenishment of pawn property is fixed by the company in the following way: - Ion requirement rights - by means of making corresponding writings in the register of the pawn and presenting it to RSE "center on real estate in Almaty city"; - On securities - in Central Depository of securities CJSC or Independent registrar in accordance with the legislation. The company must uphold the cost of the pawned property during the whole circulation term of bonds on the level of no lower than 100% of bonds; total face value, which are in circulation, taking into account interest, which is charged on them. While calculation of the pawn's cost there will be taken into account the major debt on credit agreements, face value (on coupon securities), or purchasing cost (on discount securities). In order to keep the cost of pawned property on the mentioned level the company replenishes it mortgage certificates, which it purchases from banks-partners and/or requirement rights on mortgage credits, or securities. The company must change property rights, which are a part of the pawned property, when anything of the following occurs: - non-fulfillment or improper fulfillment by the borrower of bill of debt on credit agreement; - advance fulfillment by the borrower of the bill of debt on credit agreement; - loss of the subject of mortgage, which serves as securing of the bill of debt on credit agreement; - coming into effect of the court's decision решения суда about recognizing of credit or mortgage agreement as invalid, or its breaking.. For controlling timely content of the pawn the company every month till the fifteenth of each calendar month presents to the Representative information about the pawn's content. The company, with the purpose of the pawned property controlling, which is securing for bonds, makes agreement with auditing company ELTAL- UVEMAN consulting LLP (hereinafter "auditor"), which provides order of controlling the pawned property condition by the auditor by means of spot check of the pawn's condition. Every six months the auditor conducts procedures on checking twenty occasionally chosen credit agreements out of the pawn register, which is presented by the company. Auditor makes selective pawned credits' quality control, for what it: - receives from the company credit dossiers on chosen credit agreements; - compares information, which is in the pawn register, with initial documentation, which is maintained by the company; - studies information concerning pawns registrations; - studies documentation to find out the fact of conducting of the procedure on credit estimation and its approval; - checks up payments on chosen agreements ion order to make sure that credit agreements are classified in accordance with the National Bank's requirements. The auditor checks accuracy and correctness of arithmetic calculation on credit agreements list, on which requirement rights are subject of pawns. Checking by the auditor of twenty occasionally chosen credit agreements out of pawn register every six months is sufficient guarantee of the company's obligations fulfillment during next six calendar months. The auditor finishes all procedures concerning the pawn checking during 14 calendar days and presents report to the Representative and the company. The company must provide the auditor with all documents, which are necessary for the control. Procedures, which are made by the auditor are not auditing, which is made in compliance with international auditing standards, and are not an expression of any guarantees. The control, which is made by the auditor is meant exceptionally for notifying the Representative about the pawned property condition. Pawn The pawn is to pass compulsory state registration in the order, which has been set by the legislation. Right of pawn appears since its state registration. Pawn property registration is in effect till stoppage of the pawn. Expenses on payment for the state registration of the pawn are laid on the company. The pawned property provides with fulfillment of the company's obligations on bonds redemption and, in case of the company's default, paying of Representative's expenses, connected with imposing a penalty and sale of the pawned property. Interest rate payment and maturity Interest rate on bonds (percentage) is calculated in the following way: inflation index in annual expression (during the last twelve months) per month, which precedes the month, in which rate is set (for the first six months of circulation) or its reexamination is made, plus fixed margin, which is determined by the results of floatation. Fixed margin is set by the results of the first deal on bonds primary floatation and will be in effect for the whole issue for the whole period of its circulation. Interest arte is reexamined on May 10 and November 10 of each calendar year in accordance with changing of inflation index according to the data of Kazakhstan statistics agency. In case of changing interest rate imposing and actual payment of interest on the bonds by the company since the moment of the last reexamination of interest till new date of reexamination coming is made on the basis of interest rate of the last reexamination of interest rate. There are set upper and lower limits of interest rate on bonds. Value of upper interest rate limit by the date of circulation starting is: inflation index in annual expression (for the last 12 months) as of October of 2002 plus fixed margin, which is determined by the results of floatation, plus 4.5% APR. Value of the lower interest rate limit by the date of circulation starting is: inflation index in annual expression (for the last 12 months) as of October of 2002 plus fixed margin, which is determined by the results of floatation, minus 4.5% APR. In case of increase (decrease) of inflation index as of April of 2003 more than by 4.5% in comparison with value of inflation index as of October of 2002, since May 10 of 2003, the interest rate, which is higher (lower) by 4.5% than the one, which was in effect since November 10 of 2002, is set. Since November 10 of 2003 interest arte by the following formula is set: inflation index in annual expression (for the last 12 months) as of October of 2003 plus fixed margin, which is determined by the results of floatation. In the future values of the upper and the lower limits are reexamined on November 10 of each calendar year. Order of reexamination of interest rates is similar with the mentioned above one. Interest imposing on bonds begins since the day of their circulation starting, and is made during the whole circulation period and ends on the day, which precedes maturity date. Term of bondholders register fixation, who have the right for receiving of interest in bonds, - 30 calendar days before interest payment. Time basis for calculation of interest rate sum on bonds is 30/360 (settlement month lasting for 30 days and settlement year , which lasts for 360 days). Interest rate payment is made on May 10 and November 10 of calendar year, the last payment on November 10 of 2005 is made at a time with bonds maturity. Interest payment and bonds maturity are made by means of money transfer by the company to bondholders' accounts in accordance with the date of bondholders' register. Bonds maturity is made at face value at a time with the last interest rate payment on bonds. Date of bonds maturity is the date of the last payment, which will be made by the company on bonds maturity. Bonds are to be redeemed by means of money transfer to bondholders' accounts, who have been registered by the registrar as of 30 days before bonds maturity. If dates of interest payments or bonds redemption coincide with a day off or a holiday, payment will be made on the first working day, which follows the day off or a holiday. Bondholders have no right to demand interest imposing of other compensation for such the delay in payment. All payments (interest payment and bonds maturity) are made by the Company by cashless settlement. Prescheduled redemption of the company's bonds is not provided [2002-11-18]