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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 01 April 2012 News Update Select GCC Bond and Sukuk Prices (30 March 2012) S&P Affirms NBK's Ratings, Outlook Stable- S&P affirmed the longType Name Maturity Size (Mn) Rating term credit ratings of NBK at 'A+'. All the bank's ratings carry a stable Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 outlook. NBK ratings reflect its strong business position, asset quality, Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 capital and earnings, as well as its adequate risk position, funding and Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 liquidity. NBK has consistently been awarded the highest credit ratings of Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 all banks in the region by the major international rating agencies: Moody's, Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 S&P and Fitch Ratings. In their latest reports, the three rating agencies Bond Qatar Telecom 10-Jun-14 900 A/A2 affirmed NBK's credit ratings with a stable outlook. Bond Qatar Telecom 10-Jun-19 600 A/A2 Qatar Economy Expands 14%- Qatar's economy expanded 14% in inflation-adjusted terms last year as energy exports gave it one of the highest growth rates in the world, although the pace was slower than analysts had expected, preliminary data from the Statistics Authority showed. Real GDP of the world's top liquefied natural gas exporter grew 4.4% quarter-on-quarter in the final three months of 2011, and 14.7% on an annual basis. Most Lenders Agree On $2.2 Bn Debt Deal, Says DrydocksDrydocks World has secured the necessary level of support from its syndicated lenders to implement the restructuring of its $2.2bn debt, the company said. The Dubai World unit said a “significant majority” of the Group‟s lenders had formally confirmed their support for the restructuring. However, a small minority is yet to confirm support. The company did not specify what percentage of lenders needed to agree for it to go ahead with the restructuring proposal. “The Group remains confident the absence of support from this minority will have no impact on the group‟s restructuring,” said the chairman of Drydocks World Khamis Juma Buamim. Saudi Electricity Secures $1.4 Bn Loan To Fund Power ProjectSaudi Electricity Co. said it signed a $1.4bn loan agreement with a group of international banks led by HSBC to help finance the construction of a power plant. The 15-year loan will be used to help finance the construction of SEC's Rabigh VI power plant on the Red Sea coast to the north of Jeddah city. The loan is guaranteed by Korea Trade Insurance Corp. and by the Export-Import Bank of Korea. The lenders participating in the loan include, among others, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corp, and Mizuho Bank. Mubadala Secures Abu Dhabi Commercial Bank Loan With Aldar Shares- Abu Dhabi Commercial Bank, the UAE's third-largest lender by assets, said it has made a secured loan to government-controlled investment firm Mubadala Development Co. through a repurchase agreement involving shares of developer Aldar Properties. "Under the terms of the agreement, Mubadala will transfer to ADCB 571.9mn Aldar shares, equating to approximately 14% of Aldar's outstanding share capital. At maturity in April 2013 (or earlier if terminated prior to maturity), the shares will be transferred back to Mubadala."

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 107.235 118.996 108.500 122.000 107.532 121.592 109.317 122.416 BB-/B1 109.737 BBB-/Baa3 105.237

Ask Price 107.747 119.641 109.000 122.500 108.122 122.477 109.950 123.241 110.414 105.779

Bid Yield 1.490% 3.475% 1.209% 3.219% 2.047% 4.085% 2.109% 4.223% 3.970% 5.097%

Ask Yield 1.243% 3.381% 0.970% 3.148% 1.771% 3.957% 1.829% 4.105% 3.659% 4.982%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 30-March-12 31-December-11 Conventional 30-March-12 30-December-11

Total Return 136.57 133.00 146.13 141.59

3.46 3.59

3.91 4.31

285.57 312.20

Clean Price 3.84 97.15 3.99 95.79

5.32 5.26

4.63 5.07

273.25 322.59

7.38 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

100.45 98.53

5.02 5.06

157.94 142.39

5.51 5.63

915.06 808.83

Interbank Rates (%) SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR

1-Month 01/04/12 31/12/11 0.5700 0.5188 0.5625 0.5625 0.8417 0.8500 0.8100 0.4300 0.9750 0.9750 0.2413 0.2953 0.3621 0.9643

U.S. Treasuries (30 March 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.375 1.000 2.000 3.125

Equity Market Snapshot Abu Dhabi SE Bahrain SE Dubai SE Kuwait SE Muscat SE Qatar SE Saudi SE

Last Close 2,566.92 1,150.42 1,652.44 6,186.70 5,720.53 8,772.96 7,782.84

Price 0.065 99.844 99.633 99.813 98.156 96.031

1 Day Change -0.5% 0.2% 1.9% -0.4% -0.5% 0.2% 0.7%

3-Month 01/04/12 31/12/11 0.8800 0.7800 0.7500 0.8125 1.2667 1.2583 1.0000 1.1000 1.5363 1.5200 0.4682 0.5810 0.6809 1.2921 Price Change 0.003 0.020 -0.004 -0.121 -0.430 -1.148 YTD Change 6.3% 0.8% 24.4% 6.0% -0.1% 0.1% 22.1%

01/04/12 1.0900 1.3125 1.9500 2.3300 1.9863 1.0485 1.3806

1-Year

31/12/11 1.0400 1.3125 1.9583 2.1500 1.9725 1.1281 1.9134

Current Yield (%) Yield Change (%) 0.069 8.001 0.331 -2.326 0.502 0.604 1.039 2.541 2.211 2.361 3.337 1.939

Crude Oil Brent WTI OPEC

Price 122.88 103.02 121.57

1 Day ∆ 0.40% 0.23% -0.56%

Gold Spot $/OZ

Price 1,668.01

1 Day ∆ 0.41%

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

Fitch

Bahrain Baa1 BBB

BBB

Kuwait Aa2

AA

AA NR

AA

Oman

A1

A

Qatar

Aa2

AA

NR

KSA

Aa3 AA-

AA-

UAE

Aa2

NR

NR

GCC Currencies Currency

USD 1-Day ∆

KWD

0.2777 (0.0001)

SAR

3.7504

0.0001

BHD

0.3770

0.0000

QAR

3.6409 (0.0002)

OMR

0.3851

AED

3.6730 (0.0001)

0.0001

EUR/USD 1.3343

0.0069

JPY

0.4600

82.8700

USD 5-Year CDS Abu Dhabi Dubai

YTD Change

117.840

-7.6%

340.000

-23.6%

Bahrain 355.000

-7.4%

Qatar

119.000

-6.6%

Saudi

118.500

-7.8%

Egypt

559.740

-12.5%

Lebanon 451.570

-4.3%

Turkey

228.200

-21.7%

China

112.755

-23.4%

France

168.200

-23.5%

Germany 74.000

-27.6%

Japan

99.830

-30.3%

UK

63.090

-35.3%

US

30.000

-38.7%

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.


DFIU 01042012