Kazakhstan Mortgage Company JSC (Kazakhstan) has floated at the specialized trades of KASE 20.0% of the 6th emission bonds for KZT 1 bn at 7.29% APR

/KASE, July 14, 04/ - Today in Kazakhstan stock exchange's (KASE) trade system there were held specialized trades on primary floatation of indexed on inflation level mortgage bonds of Kazakhstan Mortgage Company CJSC (Almaty) of the sixth emission (KZ2CKY07B220, KZIKb6; KZT 1, KZT 5.0 bn.; June 1, 04 - April 1, 11, semi-annual coupon with floating rate, 30/360, first coupon is short). The issuer offered to market participants bonds for total face value of KZT 1.0 bn. or 20% of the registered emission volume. The subject of trades was the value of the fixed margin, which participants specified in their bids as the price. This parameter, on one hand, determines the amount of coupon rate of bonds, which at these trades was cut-off rate (interest rate on bonds in the first coupon period is calculated using the amount of the fixed margin and inflation rate in annual expression for the period June of 2003 - June of 2004 - 6.9%), on the other hand - it is a price parameter, as the issuer used it to calculate the cut-off price, at which not cut-off bids were to be satisfied. Limited (competitive in GS market's terminology) and market (uncompetitive) bids were admitted to the trades. Stake of market bids satisfaction was 70%. A total of 10 KASE's members took part in the trades, who submitted 31 bids on behalf of themselves and their clients. By the moment of ending of the time for bids presenting there were 20 limited and 3 market orders for purchasing of 5,402 million of bonds. Thus, total demand exceeded offer 5.4 times. 67.4% in total volume of demand were controlled by bids of Kazakhstan pension funds, 26.8% - by bids of commercial banks, 5.8% - by clients of broker-dealer companies. Margin in the submitted bids varied between 0.30% (corresponding to coupon rate equaling to 7.20%APR) to 1.50%APR (8.40%APR). Weighted average margin on demand amounted to 0.60%, what corresponded to coupon rate equaling to 7.50%APR. The issuer used margin equaling to 0.39% as the margin, and as a result the coupon rate on bonds during the first coupon period was determined at 7.29% APR. According to results of the trade the issuer has satisfied 5 bids for purchasing of 1 billion of bonds, having floated the whole planned volume at 7.29% APR. The bids were satisfied at clean price 100.0021% of bond's face value (KZT 1. 008931 per security). Sum of borrowing was KZT 1,008,930,813.28. By results of the floatation 94.3% of the bonds were purchased using pension assets of accumulative pension funds and 6.7% by other clients of broker-dealer companies. Bids were submitted to the KASE's trade system from 11:30 a.m. till 1:00 p.m. of Almaty time. All settlements on the trades are to be made before 13:00 of Almaty time on July 15, 2004 (by the scheme T+1). [2004-07-14]