Kazakhstan Mortgage Company JSC has floated at the specialized trades of KASE 20% bonds of the 7th issue for the amount of KZT1,015.6 at 6.9 APR

/KASE, December 22, 04/ - Today in trade system of Kazakhstan stock exchange (KASE) specialized trades on primary floatation of mortgage bonds of Kazakhstan Mortgage Company JSC (Almaty) of the seventh issue (KZ2CKY07B303; official "A" listing category, KZIKb7, KZT1, KZT5,000.0 m.; October 1, 04 - October 1, 11, indexed by the level of inflation semi-annual coupon, 30/360) were held. The issuer offered to market participants 1 bn. bonds, that is 20% from registered emission volume. The subject of trade was value of fixed margin, which was introduced by participants in bid as a price. This parameter determines, on the one hand, value of coupon interest rate on bonds, which was determined at these trades as a cutting off rate (interest rate on bonds in the current coupon period is calculated from the amount of fixed margin and level of inflation in yearly term for the period November-2003 - November-2004 - 6.8%), and on the other hand - was price parameter, as it was used by the issuer in calculation of cutting off price, by which non-cutting off bids should be satisfied. Trades accepted limited (competitive in GS market term) and market (non- competitive) bids. Stake of market bids satisfaction - 70%. 11 KASE's members took part in the trades, who submitted 28 limited and 8 market bids. To the moment when time for submission of bids was finished in KASE trade system 28 bids (21 limited and 7 market) were left for purchase of 11,829,500,000 bonds. Thus, total demand at trades exceeded supply in 11.8 times. In total volume demand 76.3% (according to number of bonds) were controlled by bids of Kazakhstan pension market entities, 16.9% - by bids of Kazakhstan banks, 6.8% - by bids of clients of brokerage- dealers companies. Margin in submitted bids varied from 0.10% (what corresponds to coupon rate 6.90% APR) to 1.50% (8.30% APR). Average weighted (through number of bonds) margin according to all limited bids equaled to 0.38% (7.18% APR). According to results of the trade the issuer decided to satisfy all market bids in full volume and one limited - partly for purchase of 1,000 m. bonds, thus floating planned volume. As cutting off the issuer used margin in the amount of 0.10%, as a result value of interest rate on bonds in current coupon period was determined at the level of 6.90% APR. All bids were satisfied by net price 99.9855% from nominal value of bonds. Amount of borrowing equaled to KZT1,015,571,626.46. By the results of floatations 75.1% bonds should be purchased by the republic's pension market entities at the expense of pension assets of accumulative pension funds, 20.0% - by Kazakhstan banks, 4.9% - by clients of brokerage-dealers companies. Bids were submitted to KASE trade system from 11:30 to 13:00 of Almaty time. All calculations on trades should be carried out till 13:00 of Almaty time on December 23, 2004 (by T+1 scheme). [2003-12-22]