Development bank of Kazakhstan plans to issue domestic bonds for $30-40 in 2004

/REUTERS, Astana, Raushan Nurshayeva, November 5, 03/ - State Development bank of Kazakhstan plans to issue seven-year domestic bonds for $30-40 m in 2004, the president of the bank Kambar Shalgimbayev said on Wednesday. "Indicative is for 7 years. The volume - $30 - 40 m approximately", - he informed at press conference dedicated to floatation on October 30 of 10- years euronotes of Development bank for $100 m. According to the bank's president, precise date of the upcoming issue is uncertain yet and will depend on market situation. We will be issuing, as the market will react. It is too early to say whether it is going to be January or February. But as actual experience shows - it is likely to be the end of first quarter, the mid of the second quarter of 2004", - Shalgimbayev said. Development bank of Kazakhstan considers future issue of domestic bonds as a support to domestic securities market, which exhausts a deficit of financial instruments. "This is one of the bank's goals on formation and support of securities market of Kazakhstan,... especially when the market experiences definite financial instruments shortage after new rules adopted by the National bank came in force", - he said. In September the National bank of Kazakhstan introduced new rules on retired income investing procedures, prohibiting purchase of bonds issued through foreign companies - SPV (special purpose vehicle), because it considers investments in such securities as too risky. Shalgimbayev assessed the floatation of 10-year bank's bonds as "successful", though it coincided with worsening of situation around Russian YUKOS. "When we began our road-show, let's say, unstable situation in Russia may have influenced the results of the bank's euronotes floatation", - the resident of Development bank said. "As for me personally: we gave a start a little bit and we're thinking ... what floatation results would be, but that was only the first impression", - he added. Demand for the bank's bonds exceed supply more than three times. "Yet market responded right, but I want to say that investors taking into consideration weakness and volatility of the market, still diversified Kazakhstan and Russia", and demand, therefore, exceed supply three times, that is there were bids for more than $300 m", - Shalgimbayev said. [2003-11-05]