Kazakhstan Mortgage Company CJSC has set interest rate 11.75% APR on bonds of the 1st issue for the 2nd coupon period

/KASE, May 12, 03/ - Kazakhstan Mortgage Company CJSC (Almaty) has informed Kazakhstan stock exchange (KASE) with the official letter about the fact that since May 10 till November 9 of 2003 there has been set coupon rate on the company's bonds of the first issue (KZ2CKY03A676, KASE's official "А" listing category, KZIKb1, KZT10,000, KZT1.5 bn, November 10, 02 - November 10, 05, semi-annual coupon with floating rate), which were secured by mortgage pool, at the rate of 11.75% APR. This rate has been determined as the sum of inflation level in annual expression for the period April of 2002 - April of 2003 (7.0%) and fixed margin (4.75%), which was determined while primary floatation of bonds on November 18 of 2002. During the first coupon period, which ended on May 9, the rate was 10.75% APR. We are reminding that according to the terms of bonds issue interest rate in percents is calculated in the following way: inflation level in annual expression (for the last twelve months) for the month, which precedes to the month, in which the rate is fixed (for the first six months of circulation) or it is reexamined, 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 rate is reexamined on May 10 and on November 10 each calendar year according to change of inflation index according to the data of Kazakhstan statistics agency. In case interest rate changes charging and actual interest payment by the company on bonds since the last reexamination of interest rate till the new term of reexamination is made on the basis of the interest rate of the last reexamination of interest rate. Issue terms set upper and lower limits of interest rate on bonds. Value of the upper limit by the date of bonds circulation start is: inflation index in annual expression (for the last twelve months) for October of 2002 plus fixed margin, which is determined by the results of floatation, plus 4.5% APR. Value of lower limit of the interest rate by they date of circulation start is: inflation index in annual expression (for the last twelve months) for October of 2002 plus fixed margin, which is determined by the results of floatation, minus 4.5% APR. In case of increasing (decreasing) of inflation index for April of 2003 by more than 4.5% in comparison with inflation index for October of 2002, since May 10 of 2003 interest rate, which is more (less) by 4.5% than interest rate, which was in effect since November 10 of 2002, is set. Since November 10 of 2003 interest rate by the following formula is set: inflation index in annual expression (for the last twelve months) for October of 2003 plus fixed margin, which was determined by the results of floatation. Afterwards values of upper and lower limits are reexamined on November 10 of each calendar year. Order of interest rates reexamination is similar with the above-mentioned one. [2003-05-12]