/KASE, July 13, 2020/ – Following a decision of the Management Board of Kazakhstan
Stock Exchange (KASE or the Exchange) dated July 9, 2020, the following weighted
average yield rates for calculation of the fair value of illiquid debt securities
issued by organizations – residents of the Republic of Kazakhstan were fixed for
the third quarter of 2020:
1) on tenge-denominated non-indexed debt securities:
for category "bonds" of main market – 7.40 % APR;
for category "commercial bonds" of the main market – 11.50 % APR;
for category "bonds" of the alternative market – 10.89 % APR;
for category "commercial bonds" of the alternative market – 10.31 % APR;
2) on tenge-denominated debt securities indexed at inflation or at a floating
rate, independent from the exchange rate of the tenge to a foreign currency;
for category "bonds" of the main market – 13.16 % APR.
3) on tenge-denominated debt securities indexed at the exchange rate of the
tenge to a foreign currency and debt securities denominated in a foreign
currency;
for category "bonds" of the main market – 6.02 % APR.
KASE's Management Board made a decision not to fix the weighted average yield rate
of debt securities for groups of securities, in respect of which it is impossible
to calculate values of this rate.
The procedure for calculation of the weighted average yield rate of debt securities
was determined by the new internal document of KASE "Methodology for Calculation
of the Weighted Average Yield Rate of Illiquid Debt Securities and for Determining
their Fair Value" (hereinafter, the Methodology) approved by a decision of KASE's
Board of Directors dated April 11, 2018.
We remind you that the mentioned weighted average yield rates are determined in
accordance with the "Rules for Accounting and Assessment of Pension Assets"
approved by the Resolution of the National Bank of the Republic of Kazakhstan No.
24 dated February 26, 2014 (the Rules) as follows:
1) according to item 17 of the Rules, the Exchange must weekly release on its
website the data on the fair value of illiquid debt securities issued by
resident- organizations of the Republic of Kazakhstan and included in the
Exchange’s official list. The mentioned securities mean securities, the
market value (yield) of which cannot be calculated in accordance with the
Exchange's internal document "Methodology for Securities Valuation";
2) According to item 16 of the Rules the fair value of the mentioned securities
is determined based on the Methodology. Weighted average yield rate is
determined by the Exchange's Management Board once a quarter for each particular
category (sub-category) of the "Debt securities" sector as part of separate
markets of the stock exchange's official list for each of the following groups
of securities:
tenge-denominated non-indexed debt securities;
tenge-denominated debt securities indexed at the inflation or with a floating
rate (independent from the exchange rate of the tenge to the foreign currency);
tenge-denominated debt securities indexed at the exchange rate of the tenge to
the US dollar and US dollar-denominated debt securities.
The Methodology is published on KASE website (in Russian) –
http://kase.kz/files/normative_base/metodika_discountrates.pdf
[2020-07-13]