MEOKAM-108 of Ministry of Finance of Kazakhstan of the third issue - results of offering

/IRBIS, November 17, 03/ - Today the Ministry of Finance and the National Bank of Kazakhstan held the third auction for MEOKAM-108 offering (3285 days, 9 years). Size of satisfaction for noncompetitive bids is 30% of specified amount. Following is the results of floatation and comparison with previous similar issue: --------------------------------------------------------------------------- Type of securities MEOKAM-108 MEOKAM-108 NSIN KZK2KY090035 KZK2KY090019 KASE trade code MOM108.003 MOM108.001 IRBIS registration number 3/108 1/108 Par value, KZT 1,000.0 1 000,00 Time Basis actual/365 actual/365 Issue date Nov 17, 03 Oct 13, 03 Payment date Nov 18, 03 Oct 14, 03 Circulation start date Nov 19, 03 Oct 15, 03 Maturity date (planned/actual) Nov 15, 12 Oct 11, 12 Days in circulation 3825 3285 Coupon payments dates (planned/ actual) 1 May 18, 04/May 18, 04 Apr 13, 04/Apr 13, 04 2 Nov 17, 04/Nov 17, 04 Oct 13, 04/Oct 13, 04 3 May 18, 05/May 18, 05 Apr 13, 05/Apr 13, 05 4 Nov 17, 05/Nov 17, 05 Oct 13, 05/Oct 13, 05 5 May 18, 06/May 18, 06 Apr 13, 06/Apr 13, 06 6 Nov 17, 06/Nov 17, 06 Oct 13, 06/Oct 13, 06 7 May 18, 07/May 18, 07 Apr 13, 07/Apr 13, 07 8 Nov 17, 07/Nov 19, 07 Oct 13, 07/Oct 15, 07 9 May 17, 08/May 19, 08 Apr 12, 08/Apr 14, 08 10 Nov 16,08/Nov 17, 08 Oct 12, 08/Oct 13, 08 11 May 17, 09/May 18, 09 Apr 12, 09/Apr 13, 09 12 Nov 16,09/Nov 16,09 Oct 12, 09/Oct 12, 09 13 May 17, 10/May 17, 10 Apr 12, 10/Apr 12, 10 14 Nov 16,10/Nov 16,10 Oct 12, 10/Oct 12, 10 15 May 17, 11/May 17, 11 Apr 12, 11/Apr 12, 11 16 Nov 16,11/Nov 16,11 Oct 12, 11/Oct 12, 11 17 May 16, 12/May 16, 12 Apr 11, 12/Apr 11, 12 18 Nov 15, 12/Nov 15, 12 Oct 11, 12/Oct 11, 12 Planned volume. KZT m 4,500.0 (+3,600.0) Number of participants - Primary dealers 9 (-2) Demand. KZT m 2,230.0 (+380.0) Maximum yield on demand, % APR 20.00 (-10.0) Actual volume, KZT m 520.2 (-303.0) Fixed rate, % APR 6.30 (+0.10) According to information of the Ministry of finance, no bids were submitted to the auction from non-residents. Relative to previous successful floatation of МЕОКАМ dated November 10, 2003, (МЕОКАМ-60, KZK2KY050187, coupon rate 6.09% APR) demand has dropped by KZT4,877.2 m. (3.2 times), actual volume of satisfied bids - by KZT3,522.2 m. (7.8 times). The conjecture of a given market segment changes. Judging on floatation results, investors today speculated on bonds' yield rise in organized manner, as a result of which the issuer did not manage to borrow planned volume of funds at convenient price. The Ministry of finance has not experienced such market pressure long ago. At previous MEOKAM floatation, securities were purchased mainly by clients of Primary dealers, i.e. most likely by pension funds. It is also possible that due to issuance of new corporate bonds (domestic securities of Bank TuranAlem OJSC of the thirds issue, euronotes of Development bank of Kazakhstan OJSC of second tranche) MEOKAM lacks attractiveness for this type of investors. Banks refuse to buy MEOKAM because of their low yield and poor liquidity at secondary market, which makes speculative potential of MEOKAM very weak. [2003-11-17]