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Kuwait Financial Centre “Markaz” MENA Daily Fixed Income Report –11 September 2012 News Update Select MENA Bond and Sukuk Prices (10 September 12) Global Deal May Get Kuwait’s Debtors Back on Track- Global Type Name Maturity Size (Mn) Rating Bid Price Investment House KSCC‟s second deal with creditors to restructure $1.7 Sovereign billion of debt may help Kuwait‟s struggling investment companies to Bond State of Qatar 20-Jan-17 2,000 AA/Aa2 104.938 recover after the nation‟s credit crisis slowed lending. Shareholders of Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 127.323 Kuwait City-based Global agreed this month to issue 122 million dinars Sukuk Dubai DOF Sukuk Ltd 2-May-17 600 -/-/107.028 5-Jul-20 1,500 BBB/102.490 ($433 million) of shares to be held by a special purpose vehicle, which Bond Kingdom of Bahrain 12-Oct-17 600 -/97.260 would manage $435 million of the company‟s debt. Global would transfer Bond Lebanese Republic 14-Jul-17 2,250 BB/Ba1 121.750 the remaining liabilities to a second SPV, enabling it to focus on reviving Bond Republic of Turkey 29-Apr-20 1,000 -/101.867 asset management, brokerage and investment banking businesses after Bond Arab Republic of Egypt Bond Kindgom of Jordan 12-Nov-15 750 Ba2/BB 97.073 reporting consistent losses since the end of 2008. Bond Republic of Iraq 15-Jan-28 2,700 -/90.010

Ask Price Bid Yield Ask Yield

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

105.247 127.940 107.633 102.720 98.865 122.200 102.740 97.923 90.985

1.935% 2.256% 3.225% 5.098% 5.625% 2.681% 5.447% 4.882% 7.090%

1.866% 2.170% 3.112% 5.061% 5.257% 2.592% 5.30% 4.584% 6.959%

104.847 129.066 110.448 113.220 110.108 117.672 110.181 103.611

4.152% 3.193% 4.730% 2.420% 4.025% 6.604% 6.422% 1.967%

3.931% 3.070% 4.386% 2.190% 3.927% 6.468% 6.248% 1.838%

Jordan

Ba2

BB

NR

Saudi Banks Freed to Boost Loans as Inflation Slows- Slowing HSBC/NASDAQ Dubai Middle East US Dollar Sukuk /Bond Index Total Clean inflation in Saudi Arabia is giving banks room to boost lending as the Sukuk Duration Yield Spread Life Coupon Total Market Cap Return Price government increases spending on infrastructure and housing in the 07-Sep-12 161.404 5.07 3.96 259.73 6.51 104.06 5.42 1478.15 largest Arab economy. Consumer prices rose 4 percent in July, the lowest 31-Dec-11 148.84 4.99 5.07 326.79 6.80 99.35 5.81 1157.44 rate of increase since October 2009, according to data from the Central Department of Statistics. Food, medical care and transport services led the Interbank Rates (%)

China

Aa3 AA-

A+

UK

Aaa AAA

AAA

US

Aaa AA+

AAA

U.A.E. Central Bank Plans to Install Discount Window- The Central Bank of the United Arab Emirates plans to install a discount window as it seeks to protect the banking system from future shocks. The Marginal Lending Facility will allow banks to borrow intraday and overnight funds from the Central Bank in Abu Dhabi, it said today in its Financial Stability Review. The move will improve “liquidity management” within the U.A.E. and support the development of collateralized debt markets, the bank said, without giving details as to when the new facility would start.

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.

slowdown, it said. Inflation concerns are easing even as loan growth to private businesses accelerates. The kingdom has started implementing its SAIBOR $514 billion plan to build homes, industrial cities and airports to stem anti- KIBOR government protests that swept much of the Middle East. BHIBOR Egypt to sell sukuk after new law is approved- Prime Minister Hisham Qandil said Egypt plans to sell sukuk, or Islamic bonds, after new legislation on the debt instrument is passed within three months, a step aimed at meeting the budget deficit. Qandil, speaking in an interview in Cairo, said he had no further details on the possible issuance, which would be used along with sales of traditional domestic debt and international aid to meet the fiscal year's budget deficit of 135 billion Egyptian pounds ($22 billion), or 7.6 per cent of economic output. Iran to sell $1.2 billion in oil and gas bonds- The National Iranian Oil Company will start selling 15 trillion rials in bonds in the near future to finance oil and gas projects, the NIOC head said. Five trillion will be used for financing offshore oil projects and 10 trillion rials will finance the South Pars gas field development projects, Ahmad Qalehbani added, the Shana news agency reported.

QATAR AEIBOR LIBOR EURIBOR JDIBOR TRLIBOR

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

3-Month 11/09/12 31/12/11 0.9550 0.5188 0.8750 0.5625 1.2450 0.8500 1.2500 0.4300 1.3037 0.9750 0.4042 0.2953 0.2610 0.9643 4.9310 3.8410 6.7027 11.2750

U.S. Treasuries 11 September 2012 3-Month 2-Year 3-Year 5-Year 7-Year 10-Year 30-Year

Current Yield (%) 0.10 0.25 0.32 0.64 1.07 1.65 2.80

1-Day ∆ (%) -0.005 0.000 0.000 0.000 -0.005 -0.002 - 0.002

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

11/09/12 1.0050 1.1875 1.5517 1.4071 1.4725 0.6906 0.5090 5.3660 7.3800

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

103.947 128.210 109.846 112.130 109.658 116.761 109.025 103.039

6-Month 31/12/11 0.7800 0.8125 1.2583 1.1000 1.5200 0.5810 1.2921 4.2380 Currencies 11.316 Currency USD

1-Year 11/09/12 31/12/11 1.1400 1.0400 1.4375 1.3125 1.9250 1.9583 1.7428 2.1500 1.6200 1.9725 1.0170 1.1281 0.7660 1.9134 5.8380 5.2000 7.7063 11.3743 1-Day ∆

0.2819 1-Day 0.0003∆ 1 Year (%) CurrencyKWD USD SAR 3.7502 (0.0001) -2.183% KWD 0.2817 0.0002 SAR 3.7503 0.0001 0.011% BHD 0.3770 0.0000 BHD 0.3770 0.0001 0.003% QAR 3.6413 0.0004 QAR 3.6411 0.0003 0.011% OMR 0.075% OMR0.38500.3850 0.0003 0.0003 AED 3.6730 0.0001 -0.005% AED 3.6730 0.0001 EGP 6.0883 0.0082 -2.272% EUR/USD (0.0027) JOD 0.70811.2265 0.0002 0.014% EUR/USD 1.2764 (0.0027) -6.675%

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- BBB-

USD 5-Year YTD CDS Change Abu 105.100 -17.5% Dhabi Dubai 281.500 -35.2% Bahrain 272.500 -27.0% Qatar

105.100 -17.7%

Saudi

95.470 -25.6%

Egypt

433.095 -32.1%

Lebanon 485.505

2.9%

Turkey

154.460 -46.7%

Iran

43.995

14.8%

Morocco 215.520 -19.5% China

83.855 -43.3%

France

120.085 -45.9%

Germany 53.500 -47.9% Japan

72.890 -49.9%

UK

47.380 -51.4%

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.

DFIU11092012  

DFIU11092012

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