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Kuwait Financial Centre “Markaz” MENA Daily Fixed Income Report –03 October 2012 News Update Qatar Islamic Bank plans 5-yr benchmark sukuk; pricing this week- Qatar Islamic Bank, the Gulf state's largest sharia-compliant lender, is planning to issue a five-year benchmark-sized sukuk this week, arranging banks said on Tuesday. Price guidance for the dollar-denominated issue was set at a spread of 190 basis points over midswaps. Benchmark-sized is understood to be at least $500 million. HSBC, Standard Chartered, Deutsche Bank and Qinvest, part-owned by QIB, are arranging the deal.

GCC Bond & Sukuk: Best and worst Performers Daily change 0.72% 0.58% 0.55% 0.54% 0.43% Monthly change 3.43% 2.43% 1.97% 1.49% 1.12% YTD change 37.90% 32.30% 31.63% 28.34% 28.04%

Best daily Performers QTEL INTERNATIONAL FIN 2025 DUBAI HOLDING COMM OP 2017 NAKILAT INC 2033 IPIC GMTN LTD 2041 BURGAN FINANCE NO.1 LTD 2020 Best monthly Performers NAKILAT INC 2033 RAS LAFFAN LNG 3 2027 RAS LAFFAN LNG 3 2027 IPIC GMTN LTD 2041 KINGDOM OF BAHRAIN 2020

Worst daily Performers DANA GAS SUKUK LTD 2012 PYRUS LTD 2015 KINGDOM OF BAHRAIN 2020 IDB TRUST SERVICES LTD 2015 IDB TRUST SERVICES LTD 2014 Worst monthly Performers NATIONAL BK OF ABU DHABI 2042 CBB INTERNATIONAL SUKUK 2013 DUBAI GOVT INT'L BONDS 2015 TAMWEEL FUNDING LTD 2017 DUBAI GOVT INT'L BONDS 2013

Daily change -0.35% -0.08% -0.06% -0.06% -0.05% Monthly change -0.25% -0.25% -0.20% -0.15% -0.13% YTD change -3.32% -2.77% -2.63% -1.84% -1.61%

Dubai utility DEWA plans to raise $1.23 bln in 2013: CEO - Dubai Electricity and Water Authority plans to raise 4.5 billion dirhams ($1.23 billion) in debt next year, the state-owned utility's chief executive said on Tuesday. DEWA, which was recently upgraded to investment-grade by Best YTD Performers Worst YTD Performers ratings agency Moody's, will raise the funds via sukuk, export credit NATIONAL BK OF ABU DHABI 2036 DANA GAS SUKUK LTD 2012 agencies and syndication with the proceeds used primarily for debt IPIC GMTN LTD 2041 TAQA ABU DHABI NATL ENER 2012 repayment as well as investments, Saeed Mohammed al-Tayer told ANKA A SUKUK LTD 2016 DUBAI GOVT INT'L BONDS 2014 reporters. Last week, Tayer had said the utility planned a sukuk issue in DUBAI HOLDING COMM OP 2017 TAQA ABU DHABI NATL ENER 2013 2013 as part of its refinancing plans. When asked about the timeframe for MBPS FINANCE CO 2015 RAK CAPITAL 2014 raising funds next year, Tayer said on Tuesday it would be ongoing Source: Bloomberg, Markaz Analysis throughout the year. DEWA completed its first ECA-backed financing - HSBC/NASDAQ Dubai Middle East US Dollar Sukuk /Bond Index Total Clean worth $1 billion with a tenor of 13 years - in May 2009 with agencies from Sukuk Duration Yield Spread Life Coupon Total Market Cap Return Price France, Germany and Italy. 01-Oct-12 163.023 5.05 3.81 252.26 6.44 104.77 5.39 1503.78 Morocco BMCE Bank To Raise $697.1M; Plans Overseas Expansion- Morocco's Banque Marocaine du Commerce Exterieur, or BMCE Bank, plans to raise 6 billion Moroccan dirhams ($697.1 million) to finance its overseas expansion in Africa and Europe, and meet the central bank's requirements, pan-Arab daily Asharq Al Awsat reports Tuesday citing an executive. The funds will be raised through a MAD2 billion capital increase and an issue of bonds convertible into shares worth MAD2 billion, in addition to plowing back MAD2 billion of profit into the bank, Brahim Benjelloun-Touimi, BMCE's general manager, said according to the paper.

31-Dec-11

4.99

Interbank Rates (%)

SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR JDIBOR UAE’s GDP growth to slow next year, says NBAD- The growth in the TRLIBOR

UAE’s gross domestic product (GDP) next year is expected to slow to 3.2 per cent from 3.31 per cent this year, Giyas Gokkent, chief economist for National Bank of Abu Dhabi said on Tuesday. Speaking to reporters shortly after NBAD released its Economic Outlook- 2012 which covers Gulf Cooperation Council states, Egypt and Jordan, Gokkent said there are expectations of a global economic slowdown next year because of problems in the Euro zone and due to an anticipated fall in China’s economic growth.

148.84

3-Month 03/10/12 31/12/11 0.9581 0.5188 0.8750 0.5625 1.2383 0.8500 1.2285 0.4300 1.3025 0.9750 0.3540 0.2953 0.2200 0.9643 4.9940 3.8410 6.6097 11.2750

U.S. Treasuries 03 October 2012 3-Month 2-Year 3-Year 5-Year 7-Year 10-Year 30-Year

Current Yield (%) 0.08 0.23 0.30 0.61 1.02 1.60 2.80

1-Day ∆ (%) -0.005 0.000 -0.003 -0.006 -0.019 -0.018 -0.016

5.07

326.79

6.80

99.35

5.81

1157.44

6-Month 1-Year 03/10/12 31/12/11 03/10/12 31/12/11 1.0081 0.7800 1.1400 1.0400 1.1250 0.8125 1.3750 1.3125 1.5400 1.2583 1.9033 1.9583 1.3857 1.1000 1.7357 2.1500 1.4713 1.5200 1.6025 1.9725 0.6259 0.5810 0.9615 1.1281 0.4350 1.2921 0.6810 1.9134 Currencies 5.4220 4.2380 5.9130 5.2000 Currency USD 1-Day ∆ 7.1113 11.316 7.4797 11.3743 KWD 0.2819 0.0003 1 Year (%) CurrencySAR USD ∆ 3.7502 1-Day (0.0001) KWD SAR BHD QAR OMR AED EGP JOD EUR/USD

BHD 0.28090.3770 3.7503 QAR 0.37703.6413 OMR3.64100.3850 0.3850 AED 3.67293.6730 6.09671.2265 EUR/USD 0.7074 1.2899

(0.0001) 0.0000 0.0001 0.0004 0.0000 0.0000 0.0003 (0.0000) 0.0001 (0.0001) (0.0012) (0.0027) (0.0002) (0.0021)

-1.317% 0.003% 0.003% 0.003% 0.000% 0.000% -2.275% 0.226% -2.102%

MENA Sovereign Ratings Moody’s S&P Fitch Abu Aa2 AA AA Dhabi Bahrain Baa1 BBB

BBB

Kuwait

Aa2 AA

AA

Oman

A1

NR

Qatar

Aa2 AA

NR

KSA

Aa3 AA-

AA-

UAE

Aa2 NR

NR

Egypt

B2

B

B+

Lebanon B1

B

B

Turkey

BB

BB+

Tunisia Baa3 BB

BBB-

Ba1

A

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 106.500 -16.4% Dhabi Dubai 286.816 -34.1% Bahrain 269.885 -29.5% Qatar

106.530 -16.0%

Saudi

94.000 -26.8%

Egypt

446.000 -30.2%

Lebanon 493.107 Turkey

Iran

3.7%

152.316 -46.9%

38.893

-1.2%

Morocco 234.520 -12.3% China

79.340 -44.1%

France

110.922 -50.1%

Germany 53.868 -48.1% Japan

84.168 -41.2%

UK

53.003 -45.6%

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.


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