Page 1

Kuwait Financial Centre “Markaz” MENA Daily Fixed Income Report –25 September 2012 News Update State utility DEWA eyes sukuk issue in 2013: CEO- State utility Dubai Electricity and Water Authority may issue an Islamic bond, or sukuk, in 2013, as part of its refinancing plans, the company’s chief executive said on Monday. DEWA , which was recently upgraded to investment-grade by ratings agency Moody’s, will benefit from lower borrowing costs. The chief executive said it will be used for repayment and not investment. Kuwait August Consumer Prices Rise 2.8% on Year, Kuna Reports- Inflation on annual basis rose by 2.8% in August compared with the same month in 2011. On a monthly basis the inflation rate rose by 0.5% since July. Food prices rose the highest, jumping by 5.7%. Annual Inflation rate rate was 3.1% in July.

Select MENA Bond and Sukuk Prices (24 September 12) Type Name Sovereign Bond State of Qatar Bond Emirate of Abu Dhabi Sukuk Dubai DOF Sukuk Ltd Bond Kingdom of Bahrain Bond Lebanese Republic Bond Republic of Turkey Bond Arab Republic of Egypt Bond Kindgom of Jordan Bond Republic of Iraq Corporates Bond Tamweel Funding Ltd Bond Qatar Telecom Sukuk Aldar Properties Bond Rasgas LNG 3 Sukuk DP World Ltd Bond Kuwait Projects Co. Bond Burgan Bank Bond Saudi Electricity Co.

Bid Price Ask Price Bid Yield Ask Yield

MENA Sovereign Ratings

Maturity Size (Mn)

Rating

20-Jan-17 8-Apr-19 2-May-17 5-Jul-20 12-Oct-17 14-Jul-17 29-Apr-20 12-Nov-15 15-Jan-28

2,000 1,500 600 1,500 600 2,250 1,000 750 2,700

AA/Aa2 AA/Aa2 -/-/BBB/-/BB/Ba1 -/Ba2/BB -/-

105.208 126.695 106.198 103.938 98.635 120.695 99.375 97.260 92.813

105.667 127.490 106.814 104.688 100.625 121.445 101.240 98.625 93.928

1.862% 2.321% 3.430% 4.868% 5.312% 2.850% 5.852% 4.829% 6.712%

Moody’s S&P Fitch Abu 1.755% Aa2 AA AA Dhabi 2.207% 3.290% Bahrain Baa1 BBB BBB 4.750% Kuwait Aa2 AA AA 4.858% Oman A1 A NR 2.700% Aa2 AA NR 5.547% Qatar 4.349% KSA Aa3 AA- AA6.564% UAE Aa2 NR NR

18-Jan-17 10-Jun-19 27-May-14 30-Sep-20 2-Jul-17 15-Jul-20 29-Sep-20 3-Apr-17

300 600 1,500 1,400 1,500 500 400 500

Baa1/A/A2 BB-/B1 A/Aa3 BBB-/Baa3 BBB-/Baa3 BBB/Baa1 A1/AA-

104.145 128.561 110.003 113.200 109.378 117.682 109.670 103.025

104.860 129.515 110.517 113.200 109.883 118.533 110.827 103.582

4.093% 3.119% 4.448% 1.980% 4.063% 6.451% 6.317% 1.962%

3.916% 2.983% 4.146% 1.980% 3.952% 6.325% 6.142% 1.835%

B2

B

B+

Lebanon B1

B

B

CBB Sukuk Al-Salam Securities Oversubscribed - The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD 18 million issue, which carries a maturity of 91 days, has been oversubscribed by 248%. The expected return on the issue, which begins on 26 September 2012 and matures on 26 December 2012, is 1.20%.The securities are issued by the CBB on behalf of the Government HSBC/NASDAQ Dubai Middle East US Dollar Sukuk /Bond Index Total Clean Sukuk Duration Yield Spread Life Coupon Total Market Cap of the Kingdom of Bahrain. Return Price

Turkey

BB

BB+

Tunisia Baa3 BB

BBB-

21-Sep-12 RAM Ratings assigns preliminary AA3(s) rating to Saudi-based Al 31-Dec-11

Bayan's proposed RM1 billion Sukuk - RAM Ratings has assigned a preliminary enhanced long-term rating of AA3(s) to ABHC Sukuk Berhad's proposed RM1 billion Sukuk Wakalah with a stable outlook. ABHC is a special-purpose vehicle incorporated in Malaysia to facilitate the sukuk transaction by Saudi-based conglomerate, Al Bayan Holding Company. Under a Kafalah agreement in favour of ABHC, Al Bayan shall provide an irrevocable and unconditional guarantee to holders of the sukuk. As such, the enhanced rating is based on the credit profile of the Group.

5.05 4.99

3.87 5.07

Interbank Rates (%)

SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR Dubai's JAFZA posts 20 pct drop in H1 net profit-Dubai state-owned JDIBOR industrial hub Jebel Ali Free Zone ( JAFZA ) said profit for the first half of TRLIBOR

the year fell 20 percent as higher financing costs more than offset a rise in revenue. The company, which completed a three-pronged financing package to repay a $2 billion-equivalent Islamic bond earlier this year, made a profit of 212 million dirhams ($57.72 million), down from 265 million in the same period last year. Revenues rose to 712 million dirhams in the first half of 2012 from 662 million dirhams in the first half of 2012, company financial statements showed.

162.49 148.84

3-Month 25/09/12 31/12/11 0.9544 0.5188 0.8750 0.5625 1.2467 0.8500 1.2285 0.4300 1.3025 0.9750 0.3673 0.2953 0.2250 0.9643 4.9810 3.8410 6.4045 11.2750

U.S. Treasuries 25 September 2012 3-Month 2-Year 3-Year 5-Year 7-Year 10-Year 30-Year

Current Yield (%) 0.11 0.26 0.34 0.66 1.10 1.72 2.91

1-Day ∆ (%) 0.000 0.000 0.003 0.005 0.007 0.009 0.015

253.02 326.79

6.47 6.80

104.57 99.35

5.42 5.81

1486.07 1157.44

6-Month 1-Year 25/09/12 31/12/11 25/09/12 31/12/11 1.0044 0.7800 1.1444 1.0400 1.1250 0.8125 1.3750 1.3125 1.5450 1.2583 1.9100 1.9583 1.3857 1.1000 1.7357 2.1500 1.4713 1.5200 1.6113 1.9725 0.6512 0.5810 0.9823 1.1281 0.4520 1.2921 0.7030 1.9134 5.4220 4.2380 5.8810 5.2000 Currencies 7.0699 11.316 7.4797 11.3743 Currency USD 1-Day ∆ KWD 0.2819 0.0003 1 Year (%) Currency USD 1-Day ∆ SAR KWD 0.28093.7502 (0.0001) (0.0000) -1.032% SAR (0.0001) 0.011% BHD 3.75010.3770 0.0000 BHD 0.3770 (0.0000) 0.003% QAR 3.6413 0.0004 QAR 3.6410 0.0000 0.011% OMR0.38460.3850 0.0003 OMR (0.0004) 0.107% AED 3.6729 (0.0001) -0.003% AED 3.6730 0.0001 EGP 6.0921 (0.0020) -2.095% EUR/USD (0.0027) JOD 0.70811.2265 0.0007 0.014% EUR/USD 1.2917 (0.0014) -4.559%

Egypt

Ba1

Morocco Ba1 BBB- BBBJordan

Ba2

BB

NR

China

Aa3 AA-

A+

UK

Aaa AAA

AAA

US

Aaa AA+

AAA

USD 5-Year YTD CDS Change Abu 103.820 -18.5% Dhabi Dubai 285.614 -34.4% Bahrain 264.935 -30.8% Qatar

104.120 -18.3%

Saudi

90.500 -29.6%

Egypt

442.540 -30.8%

Lebanon 460.000

-2.5%

Turkey

161.140 -44.7%

Iran

40.690

5.7%

Morocco 230.905 -13.6% China

88.685 -39.7%

France

108.000 -50.8%

Germany 50.045 -51.0% Japan

87.5000 -38.9%

UK

45.480 -53.3%

US

47.500

-3.0%

This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz) , which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “ .This Report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report.For further information, please contact ‘Markaz’ at P.O. Box 23444, Safat 13095, Kuwait. Tel: 00965 1804 800 Fax: 00965 2245 0647 Email: research@markaz.com

A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.

DFIU25092012  

DFIU25092012

Read more
Read more
Similar to
Popular now
Just for you