/IRBIS, August 26, 03/ - Following is the characteristics of bonds of
Kazakhstan Mortgage Company CJSC (Almaty) of the second issue
published in connection with their admittance into Kazakhstan Stock
Exchange's (KASE) official "A" listing category.
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Type of securities: inscribed coupon bond
Securing: secured
Issue currency: Kazakhstani tenge (KZT)
Servicing currency: Kazakhstani tenge (KZT)
National identification number: KZ2CKY10A853
Issue number in the state register: А85
Bondholders register maintenance: Fondoviy Center CJSC (Almaty)
Date of issue registration: August 13, 03
Bond's face value: 1.00 tenge
Issue volume in issue currency: 3,000,000,000.00
Issue volume in securities: 3,000,000,000.00
Date of circulation start (issue date): August 1, 03
Circulation term: 10 years and 51 days
Floatation term: During the whole circulation term
Maturity date: October 1, 13
Interest rate: floating. Will be determined by the
results of the
first deal while bonds floatation
(more detailed - below)
Dates of interest payment: October 1 and April 1 of each year
Time basis at all settlements: 30/360
Register fixation term at coupon payment: 1 day before payment date
Register fixation dates for coupon payment: September 30 and March 31
of each year
Register fixation term at maturity: 1 day before maturity date
Register fixation date at maturity: September 30, 13
Underwriters of the issue: KIB ASSET MANAGEMENT JSC
(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: August 25, 03
Trade code of KASE: KZIKb2
Date of first trades: will be determined later
Accuracy of price change: 4 decimal figures
Market-maker at KASE: KIB ASSET MANAGEMENT JSC (Almaty)
Minimal volume of compulsory quotation: 1,700,000 bonds
Credit ratings of the issue: absent on issue date
Credit ratings of the issuer: absent on issue date
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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.
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 on borrowers'
credit obligations, and also securities, which are acceptable for refinancing
by the National Bank of Kazakhstan.
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 additions and their including into the
pawn's register.
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 the face
value of bonds, 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;
- taking effect of the court's decision about recognizing of credit or
mortgage agreement as invalid, or its breaking..
The auditor checks accuracy and correctness of arithmetic calculation on
credit agreements list, on which requirement rights are subject of pawns.
The auditor finishes all procedures concerning the pawn checking within 20
calendar days and presents report to the Representative and the company.
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 condition of
the pawned property.
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 redemption
Interest rate on bonds (as percentage) is calculated in the following way:
inflation index in annual expression for the month, which precedes the
month, in which rate is set (for the term of up to October 1 of 2003) or its
reexamination is made, plus fixed margin.
Fixed margin is set till October 1 of 2006 of circulation is set by the results
of the first deal on bonds primary floatation. The company has the right to
reexamine the size of fixed margin twice during bonds circulation term -
October 1 of 2006 and October 1 of 2009. At that, the size of the fixed
margin can not be reconsidered once by more than one unit.
In case inflation index is negative, i.e. id deflation occurs, inflation index
equaling to zero is used for calculating interest rate.
Interest arte is reexamined on April 1 and October 1 of each calendar year in
accordance with changing of inflation index according to the data of
Kazakhstan statistics agency.
Information about reexamination of fixed margin size is published on KASE's
site no later than on August 1 of 2006 and August 1 of 2009. If date of
information publishing coincides with a holiday, it will be published on the
first working day, which follows the day off or the holiday.
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 and lower interest rates limits on the bonds by the date of
circulation starting are: inflation index in annual expression (for the last 12
months) for September of 2003 plus fixed margin, which is determined by
the results of floatation, plus or minus 4.5% APR correspondingly.
In case of increase (decrease) of inflation index for March of 2004 more than
by 4.5% in comparison with value of inflation index for September of 2003,
since April 1 of 2004, the interest rate, which is higher (lower) by 4.5% than
the one, which was in effect since October 1 of 2003, is set.
Since October 1 of 2004 interest arte by the following formula is set:
inflation index in annual expression (for the last 12 months) for September of
2004 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
October 1 of each calendar year of circulation. 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.
Interest rate payment and bonds redemption is made by means of money
transfer by the company to bondholders' accounts in accordance with the
data of bondholders' register.
Every year on October 1 of calendar year of circulation before October 1 of
2012 partial prescheduled redemption of the main debt on the bonds is
made. Partial prescheduled redemption is made at the face value along with
interest payment in accordance with bonds' issue terms.
Bondholders, who do not agree with the size of reconsidered fixed margin,
have the right to subject bonds, which belong to them, to prescheduled
redemption. At that, the company accepts applications for prescheduled
redemption before September 1 of 2006 and September 1 of 2009, and
redemption is made in full volume at the face value along with interest rate
payment on October 1 of 2006 and October 1 of 2009.
Bonds redemption is made at face value at a time with the last interest rate
payment by means of money transfer to bondholders' accounts.
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 the holiday. Bondholders have no right to demand interest
imposing or other compensation for such the delay in payment. All payments
are made by the company by cashless settlement.
Detailed information about the securities and their issuer, including
conclusion of the stock exchange's Listing commission, will be published in
electronic representatives of KASE in the Internet at
http://www.kase.kz/emitters/kzik.asp in the nearest future.
[2003-08-26]