Food contract corporation JSC (Kazakhstan) unable to float its bonds of the first issue

/KASE, June 4, 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. Two members of KASE submitted 2 orders for the purchase of 120,000 bonds for a total KZT1,178,138,746.58. Thus, participants were ready to purchase 40.2% of total volume offered. Clean prices stated in bids were equal to 97.6200% (8.60% APR) to 98.0129% (8.50%). Weighted average stated price of bids totaled 97.7841% yielding 8.56% 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. Cut-off price was not determined, no single bid is satisfied as volume of bids is lower than par value" 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. Yesterday, on June 3, demand fell to 28.5%, weighted average yield rose to 9.05%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. [2004-06-04]