Food contract corporation JSC (Kazakhstan) rejected another bulk of bids at primary additional floatation of its bonds of the first issue due to low prices

/KASE, May 28, 04/ - Today in trade system of Kazakhstan Stock Exchange (KASE) specialized trades on primary additional floatation of bonds by Food contrat corporation JSC (Astana) of the first issue (KZ2CKY05B091, official "A" listing of KASE, PRKRb1; KZT10,000, KZT3.0 bn; May 17, 04 - May 17, 09, coupon of 8.0%APR) were held. Bonds were offered at clean prices (without accumulated interest) expressed as the percentage of face value of security with accuracy of up to 4 decimals. The issuer offered 298,702 bonds. A total of 2 members of KASE submitted 4 bids for the purchase of 65,000 bonds for KZT621,770,223.30. Thus, participants were ready to purchase 21.8% of total volume offered. Clean prices stated in bids varied from 94.2100% (9.51% APR) to 97.6200% (8.60%). Weighted average stated price of bids totaled 95.4409% yielding 9.18% APR for the holder (weighted on tenge amount state in a bid). Local pension funds were the only interested institutions. The issuer rejected all bids as insufficient due to low prices offered. "Cut-off price was not determined, no single bid is satisfied as volume of bids is lower than volume of par value", Food contract corporation JSC said in a statement addressed to KASE. On May 27, Thursday total bids submitted comprised only 40.2% of the volume that the Company planned to issue, while weighted average yield totaled 8.93% APR. Specialized trades will be continued on working days from May 28 to June 4 of 2004 in trade system of KASE from 11:30 a.m. to 2:00 p.m. of Almaty time under T+0 settlement convention. [2004-05-28]