KAZAKHSTAN'S MANAGING COMPANIES OF ACCUMULATIVE PENSIONARY ASSETS COULDN'T BUY NOW TURANALEM FINANCE EUROBONDS

On the Kazakhstan's stock exchange (KASE) the bargains on the high income eurobonds of TuranAlem Finance B.V. of the first emission are practically absent.

These eurobonds are included into the official list of KASE securities of "A" category. The emission volume is $100 million with the circulation date of three years. The date of the circulation beginning is June 28 2001. Six month coupon is determined on the level of 11,50% of annual, current income in the market - 11,91/10,66% of annual with the moment of passing the listing procedure on the KASE.

The main potential buyer of these securities on the internal republic's market are the managing companies of accumulative pensionary assets ( MCPA) - don't have any chance to buy TuranAlem Finance eurobonds at the expense of pansionary assets, so at the expense of their own assets in spite of their high investment attractiveness.

According to the last changing and additions , made in the instruction " Prudential norms for the organizations, which accomplish their activity in the managing investments by the pensionary assets" from November 15 2000 the total investment size of separate MCPA to the securities of one issuer must not exceed the quarter of its own capital of this issuer. The issuer of these eurobonds, as known, is the company TuranAlem Finance B.V., which was created according to the decision of the Director's Soviet

of " Bank TuranAlem" in March 16 2001 with authorized capital 90 thousand euro, from which 18 thousand euro is already paid. The only founder was " Bank TuranAlem".

According to the size of authorized paid capital of TuranAlem Finance B.V. , which was equal its own, the maximum volume of buying eurobonds by one MCPA forms 4,5 thousand euro or about $4thousand .

Some MCPA bought eurobonds of TuranAlem Finance B.V. on the non stock exchange market and , according to the instruction, must sell them on the market during three months. If they don't sell them, law penalty will be used.

The stuff of the National commission on the securities ( NCS) consider that this instruction is imperfect and it will be taken out in future. Considerable changing will be made in the instruction at the nearest meeting of the National bank. In the case of accepting positive decision new variant of the instruction will be directed for the registration in the Ministry of Law. But these procedures will take some time, which will exceed three months. As a result the securities will be taken out from the portfolio of the accumulative superannuation funds.

The limitation , concerning eurobonds TuranAlem Finance , was accepted by the MCPA very sharply, because there is deficit of high income instruments on the Kazakhstan's market now, characterized by the law extent of investment risk as these securities. According the stock exchange analysts estimate , about $50 million of

nominal cost of debt TuranAlem Finance B.V. of the first emission is really easily under 10,6 % of annual for paying back in currency.