Food contract corporation JSC (Kazakhstan) failed to float its first issue bonds again, bid prices too low

/KASE, June 1, 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 3 bids for the purchase of 40,000 bonds for KZT385,667,368.49. Thus, participants were ready to purchase 13.4% of total volume offered. Clean prices stated in bids varied from 94.2000% (9.51% APR) to 97.5000% (8.63%). Weighted average stated price of bids totaled 96.1123% yielding 9.00% APR for the holder (weighted on tenge amount state in a bid). Local pension funds were the only interested institutions. After the issuer considered the list of bids stated it rejected all bids as insufficient due to low prices offered. 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. On May 28, Friday demand fell down to 21.8% of announced volume with weighted average yield of 9.18%APR. Trades held on May 31 trades were found to be of no effect. 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. [2004-06-01]