No deals recorded at floatation of the first issue bonds of Food contract corporation JSC (Kazakhstan)

/KASE, June 3, 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. Only one member of KASE, pension market player, submitted 42 orders for the purchase of 34,000 bonds for a total KZT327,343,449.42. Thus, participants were ready to purchase 11.4% of total volume offered. The fact that the bidder submitted a considerable number of orders reflects its attempt to test issuer's sensitivity to different prices. Clean prices stated in bids varied from 94.2000% (9.51% APR) to 99.9600% (8.00%). Weighted average stated price of bids totaled 95.9495% yielding 9.05% APR for the holder (weighted on tenge amount state in a bid). 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 were found to be of no effect. On June1 demand fell to 13.4%, with weighted average yield of 9%APR, but next day it reached 8.69%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. [2004-06-03]