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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 10 April 2012 News Update Select GCC Bond and Sukuk Prices (09 April 2012) Emirates Considers Bond Refinancing- Emirates airline could look at Type Name Maturity Size (Mn) Rating refinancing a $550mn bond maturing in June as borrowing costs fall, Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 according to a company executive. Gary Chapman, president of Emirates’ Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 dnata unit and services, was quoted yesterday as saying the airline will Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 study the economics of both bonds and sukuk as refinancing options. He Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 said a decision would be made after the company announces its annual Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 results in early to mid-May for the financial year that ended on March 31. Dubai Refinancing May Get Harder On New Loan Rules- Dubai state-linked companies may find it harder to complete the refinancing of $15bn in debt this year as new central bank loan rules force lenders to curtail their exposure to the government. Banks in the UAE can lend no more than 100% of their capital to local governments and the same to government-related entities known. There was no limit under previous rules. The exposure of Emirates NBD, the nation’s biggest bank, to sovereign loans was 130% of capital at the end of 2011. DIC Debt Deal Positive For Dubai Holding Unit- Dubai International Capital's $2.5bn debt restructuring is credit positive for Dubai Holding Commercial Operations Group (DHCOG) because it reduces the downside risk linked to DHCOG's parent, Dubai Holding, Moody's says. DIC's debt deal also improves Dubai Holding's ability to meet its commitments towards DHCOG. However, there remains some risk within the overall holding as Dubai Group's $6bn debt restructuring is still ongoing. "Although DHCOG's debt maturity profile has markedly improved, the group will continue to rely on a mix of operating cash flows and divestments, which carry a degree of execution risk in light of significant bullet maturities." Dar Al-Arkan Pays $7 Mn In Periodic Coupon Distribution To Its Sukuk II Holders- Dar Al-Arkan Real Estate Development Company announced the periodic coupon distribution amounting to $7,042,500 for the period commenced 17 Jan 2012 till 17 April 2012. The periodic coupon distribution is based on 3 Month Libor (0.56700 calculated on 16/01/2012) plus a profit margin of 2.25%. Dubai Duty Free In $1.1 Bn Financing Deal To Fund ExpansionDubai Duty Free, the state-owned company that operates tax-free shops at the Dubai International Airport, plans to borrow $1.1bn from banks to fund its further expansion at the global air transport hub. Dubai Duty Free has mandated Citibank, Dubai Islamic Bank, Emirates NBD Capital and HSBC Bank Middle East to arrange and coordinate the company's first international financing transaction. Abu Dhabi Commercial Bank has made an early commitment to the facilities and is a mandated lead arranger and bookrunner. The financing consists of a conventional term loan and Islamic facilities, the statement said, without elaborating on how those tranches would be divided.

Bond Bond Sukuk Sukuk

Qatar Telecom Qatar Telecom Aldar Properties DP World Ltd

10-Jun-14 10-Jun-19 27-May-14 2-Jul-17

900 600 1,500 1,500

Bid Price 107.068 118.732 108.875 122.125 107.400 121.858 A/A2 109.207 A/A2 122.640 BB-/B1 109.507 BBB-/Baa3 105.214

Ask Price 107.612 119.396 109.625 122.625 108.023 122.976 109.931 123.451 110.261 105.946

Bid Yield 1.528% 3.505% 0.977% 3.192% 2.068% 4.037% 2.112% 4.181% 5.910% 5.098%

Ask Yield 1.262% 3.408% 0.617% 3.120% 1.773% 3.875% 1.787% 4.065% 5.551% 4.942%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 06-April-12 31-December-11 Conventional 06-April-12 30-December-11

Total Return 136.52 133.00 145.89 141.59

3.84 3.59

3.95 4.31

265.64 312.20

Clean Price 4.33 97.03 3.99 95.79

5.30 5.26

4.75 5.07

278.53 322.59

7.29 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

100.19 98.53

4.91 5.06

179.58 142.39

5.47 5.63

933.80 808.83

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

1-Month 10/04/12 31/12/11 0.5796 0.5188 0.5625 0.5625 0.8500 0.8500 0.8900 0.4300 0.9750 0.9750 0.2413 0.2953 0.3604 0.9643

U.S. Treasuries (09 April 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 2,558.14 1,143.05 1,668.62 6,153.60 5,841.50 8,778.27 7,717.72

3-Month 10/04/12 31/12/11 0.8838 0.7800 0.8125 0.8125 1.2700 1.2583 1.3300 1.1000 1.5363 1.5200 0.4692 0.5810 0.6711 1.2921

Price 0.075 99.883 99.820 100.516 99.656 98.813

Price Change -0.003 0.012 0.027 0.074 0.086 0.188

1 Day Change -0.5% -0.3% -0.7% -0.5% -0.2% -0.2% -0.3%

YTD Change 6.0% -0.4% 22.5% 5.3% 2.4% -0.3% 19.9%

10/04/12 1.0931 1.3125 1.9750 2.3800 1.9863 1.0507 1.3653

1-Year

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

Current Yield (%) Yield Change (%) 0.079 0.000 0.312 -1.234 0.438 -1.796 0.894 -1.596 2.039 -0.430 3.188 -0.270

Crude Oil Brent WTI OPEC

Price 122.23 102.26 121.94

1 Day ∆ -0.36% -0.20% 0.00%

Gold Spot $/OZ

Price 1,650.85

1 Day ∆ 0.66%

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

0.2789

SAR

3.7502 (0.0001)

0.0003

BHD

0.3770 (0.0000)

QAR

3.6404 (0.0006)

OMR

0.3850 (0.0001)

AED

3.6730

0.0000

EUR/USD 1.3110 (0.0019) JPY

81.3400 (0.0500)

USD 5-Year CDS Abu Dhabi Dubai

YTD Change

118.110

-7.4%

343.200

-22.9%

Bahrain 357.135

-6.8%

Qatar

120.460

-5.5%

Saudi

119.355

-7.2%

Egypt

617.710

-3.4%

Lebanon 478.730

1.5%

Turkey

239.185

-17.9%

China

114.765

-22.0%

France

179.450

-18.4%

Germany 73.470

-28.1%

Japan

101.380

-29.2%

UK

64.835

-33.5%

US

29.430

-39.9%

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.


DFIU10042012