Kazakhstan mortgage company has given additional information about primary floatation of debut three-year mortgage bonds

/Almaty bureau REUTERS, Oljas Auezov, November 19, 02/ - Kazakhstan mortgage company (KMC) on Monday sold the first tranche of bonds in the amount of KZT300 m (about $2 m) to underwriters - Bank CenterCredit and KIB Asset Management, and set floating semi-annual coupon rate on the level of 10.75% APR, informed the company. "For the first time on the territory of CIS Kazakhstan mortgage company CJSC issued and successfully floated mortgage bonds", - says the press- release of KMC. Underwriters, in their turn, has already started admitting bids for bonds floatation at secondary market, where they will be able to be purchased by pension funds - major investors at domestic stock market, - and also banks and insurance companies. "Floatation at the secondary market will begin today", - said deputy acting director of KIB Asset Management Erbolat Baiganin. According to his words, investors' demand will significantly exceed offer under conditions of deficit of liquid financial instruments. Bonds' coupon rate, which are secured by mortgage credits, is calculated on the basis of inflation index in annual expression, which is now equal to 6% and will be reexamined each half year, and also fixed margin which is 4.75%. KMC, which's 100% of shares belong to the National Bank of Kazakhstan, has registered issue in the volume of KZT1.5 bn and intends to offer it within half a year, issuing new tranches every month, which will be purchased by the mentioned underwriters. "Now we have loans for KZT700 m, - said the President of KMC Maiko Sagindikova. - In the next year, in accordance with the business-plan, we are to take credits for KZT2 bn". The company was founded by the National Bank for refinancing mortgage credits of commercial banks. KMC purchases from banks credits, which were given in tenge and which correspond to its set of standards, including interest rate, which is not to exceed its quoting rate by more than 4%. Now quoting rate of KMC has been set on the level of 14.6%, however in the nearest future it may be decreased. "Successful floatation of the first tranche of bonds will allow us in December to examine possibility of decreasing of the quoting rate", - said the deputy president of KMC Nurlan Tokobayev. Further plans of KMC and the National Bank comprise increase of maximal terms of credits, which are refinanced by the company to 15 years from 10, and also coming to international markets of capitals and selling of the company's shares to domestic and foreign investors. "In the next year the National Bank intends to sell 60% of KMC's shares to domestic banks and international financial institutions, such as European banks of reconstruction and development and International financial corporation (which is a part of the World bank's group)", - said Tokobayev to Reuters. Besides, in the nearest future a small Kazakhstan LARIBA-Bank, which as early as in July of 2001 registered similar bonds issue for KZT156 m, may come to the market after KMC. "LARIBA-Bank may come to the market in three or four weeks", - Stiven Moody, a consultant of the company Pragma, contractor of USAID, who used to collaborate with both issuers said to Reuters. ($1 = KZT154.12) [2002-11-19]