Kazakhstan
Bonds of the Ministry of Finance of the Republic of Kazakhstan. Last week the Ministry of Finance of the Republic of Kazakhstan placed at KASE only one issue of 3-year government securities for a total amount of KZT29.1bn (KZT10bn in the previous week). Demand for those bonds significantly exceeded supply, and the yield was 9.60%, 15 bps down compared to the previous similar issue.
On June 21 and 23, repeated specialized trading session was held on KASE in 12-year and 10-year MEUKAM bonds, which were declared failed due to the fact that not a single limited counter order was accepted. The announced placement volume was T15bn and T20bn, respectively. Market participants continue to evince low interest in long-term government securities of the Ministry of Finance of the Republic of Kazakhstan, while short-term bonds of the Ministry of Finance are relatively in high demand.
The Ministry of Finance of the Republic of Kazakhstan had placed sovereign bonds in Russian rubles on the Moscow Exchange and Astana International Exchange. The total volume of the placement was RUB40 billion. The yield on 5-year bonds was 7.48%, 7-year bonds - 7.69%, 10-year bonds - 7.92%. For comparison, the current yield on OFZs with a fixed coupon is 6.94% on 5-year bonds, 6.99% on 7-year bonds and 7.16% on 10-year bonds.
Notes of the National Bank of the Republic of Kazakhstan. On June 21, an auction was held on the placement of NBK notes with a circulation period of 28 days for a total amount of KZT397.3bn and with a yield of 8.998%. In addition, on June 23, another auction was held for a total of KZT100bn with a circulation period of 182 days and a yield of 9.144%.
The weekly net borrowing balance of the Ministry of Finance of Kazakhstan and the National Bank of Kazakhstan on the government securities market amounted to minus KZT533.8bn, mainly due to the redemption of notes by the National Bank was more than the total amount of placements (at the end of the week it was minus KZT521.6bn).
On June 24, the Asian Development Bank raised about KZT13.3bn through subscription in KASE by placing international bonds with a yield to maturity of 10.45% per annum and a circulation period of 8.3 years. The total subscription demand amounted to 150.5% of the supply.
On June 24, trading session on placement of bonds of the Eurasian Development Bank were held at KASE with a maturity of one year, in the amount of KZT9.1bn at 9.55% per annum. The active orders amounted to KZT32.8bn. Demand exceeded supply by 3.6 times. Commercial banks purchased 95.6%.
On June 25, KASE held specialized trading session for the placement of bonds of Kazakhstan Stability Fund JSC (KFU) with a maturity of one year, in the amount of KZT10bn and a yield to maturity of 9.79% per annum. The active orders amounted to KZT20.9 bn. Demand exceeded supply on the placement by 2.1 times, while the entire volume bought out by commercial banks.
