On January 12 Kazakhstan Mortgage Company JSC offered on KASE 1 bn. of its KZPC2Y10B543 (KZIKb11) issue bonds at 6.90% APR

/KASE, January 12, 06/ - On January 12, 2005 in Kazakhstan stock exchange's (KASE) trade system specialized trades on offering of KZPC1Y10B543 issue mortgage bonds of Kazakhstan Mortgage Company JSC (Almaty) (KASE's official "A" listing category, KZIKb11, KZT1, KZT5.0 bn.; April 10, 05 - April 10, 15, fixed semi-annual coupon, 30/360) were held. This is the first issue made within the company's second bond program, registered by Kazakhstan Agency for financial market and financial organizations regulation and supervision on March 30 of 2005 for a total of KZT20.0 bn., and the company's eleventh bond issue, which has passed listing procedure on KASE. The issuer offered to market participants 1.0 bn. bonds, that is 20% from the registered issue volume. Subject of trades was fixed margin, expressed as percentage per annum with the accuracy of two decimal figures, which was introduced by participants as the price. Bids for participation in the offering were submitted by open method from 11:30 to 13:00 of Almaty time (ALT). Only limited bids were accepted to the trades. Bids satisfaction method was at cut off price. 6 KASE participants took part in the trades, who submitted 18 bids. By the moment of bids submitting period expiration 10 orders for purchasing 1,804,000,000 bonds were left in KASE's trade system. Thus, total demand at the trades exceeded offer 1.8 times. In total volume of demand 8.3% (by the number of bonds) were controlled by bids of Kazakhstan pension market subjects, 91.5% - by bids of Kazakhstan banks and 0.2% - by bids of clients of broker-dealer companies. The rate in submitted bids varied from 6.90% to 9.00% APR. Weighted average (through bid volume) rate on submitted bids totaled 7.33% APR. The issuer used interest rate totaling 6.90% APR as the cut-off price. By the results of trades the issuer satisfied the only bid of Kazakhstan bank for purchase of 1 bn. bonds, having offered the whole planned volume and determined fixed coupon rate of KZPC1Y10B543 issue securities at 6.90% APR. The bid has been satisfied at clean price of 99.9854% from bond's face value. Amount of borrowing totaled KZT1,017,678,866.16. The buyer must transfer money for purchased bonds to KASE's correspondent account before 13:00 ALT on January 13 of 2006 (T+1). [2006-01-12]