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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 12 April 2012 News Update Select GCC Bond and Sukuk Prices (11 April 2012) Alargan International Real Estate Company Issues KWD 26.5 Mn Type Name Maturity Size (Mn) Rating Bonds- Alargan International Real Estate Company, a leading real estate Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 developer, has announced the successful completion of a KWD26.5mn Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 bond issuance in which KAMCO, Markaz, and Burgan Bank acted as Joint Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 Lead Managers. The bonds have a 5-year tenor and were issued in 2 Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 tranches: a KWD23.2mn fixed rate tranche paying coupon of 6.25% per Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 annum, and a KWD3.3mn floating rate tranche paying 3.5% over the CBK Bond Qatar Telecom 10-Jun-14 900 A/A2 Discount Rate and capped at 7.0% per annum. Bond Qatar Telecom 10-Jun-19 600 A/A2 Nakheel Sees 2nd Tranche Of Creditor Sukuk Issued By End AprilThe chairman of real-estate developer Nakheel said he expects the second tranche of the company's AED4.8bn ($1.31bn) sukuk to be issued to trade creditors by the end of April, while he also flagged signs a of recovery in high-end Dubai real estate. Nakheel issued the first tranche of the sukuk, worth AED3.8bn, to trade creditors in August 2011. The asset-backed Islamic bond carries a coupon of 10%.

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 107.136 119.007 108.875 122.250 107.305 121.724 109.229 122.542 BB-/B1 109.426 BBB-/Baa3 105.103

3.95 4.31

277.84 312.20

Oman May Issue Bond To Cut Deficit And Pay Maturities- A Muscat146.08 5.31 4.95 based analyst said the Omani government could be looking to bridge the 141.59 5.26 5.07 budget deficit as well as refinance some of the bonds maturing this year. Interbank Rates (%) Hamoud Sangour Al Zadjali, executive president of the Central Bank of 1-Month Oman said that Oman may issue sovereign debt to the tune of OMR200mn. 12/04/12 31/12/11

290.40 322.59

7.28 7.31

Saudi Economy Grew 6.6% In Q4- Saudi Arabia’s GDP grew 6.64% from a year earlier in the fourth quarter of last year, accelerating from 5.1% growth in the third quarter. The oil sector, which accounts for nearly a third of the economy, expanded 6.13% in the fourth quarter, the Central Department of Statistics and Information in Riyadh said. The oil sector GDP rose to SAR82.66bn in the fourth quarter of 2011. The report said private sector growth, at 9.9%, outpaced the state sector’s 3.6% expansion. Private sector GDP amounted to SAR112.91bn in the fourth quarter compared to SAR102.75bn in 2010. CBRE: More UAE Real Estate Mergers May Come In 2012- The proposed merger between Aldar Properties and Sorouh Real Estate could be the latest in a line of consolidations within the UAE real estate market, says CBRE Head of Research & Consultancy Matthew Green. "In 2009, Sama Dubai, Tatweer and Dubai Properties merged, as parent company Dubai Holding sought to streamline its entities amidst challenging economic and local property market conditions.

Bid Yield 1.476% 3.460% 0.953% 3.169% 2.095% 4.052% 2.081% 4.191% 5.927% 5.119%

Ask Yield 1.229% 3.373% 0.591% 3.098% 1.844% 3.925% 1.791% 4.077% 5.609% 4.983%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index

Clean Price 4.31 97.03 3.99 95.79

UAE 2011 Fiscal Surplus Put At AED 71.5 Bn- A surge in oil prices turned a UAE fiscal deficit in 2010 to a surplus of around AED71.5bn in 2011 although public expenditure remained at one of its highest levels. The UAE suffered from a deficit in its consolidated financial account of around AED29.5bn in 2010 as a result of lower oil prices and a sharp rise in spending as part of fiscal stimulus measures adopted by the second largest Arab economy in the wake of the 2008 global financial distress.

Ask Price 107.638 119.603 109.625 122.750 107.831 122.600 109.872 123.333 110.090 105.740

Sukuk 10-April-12 31-December-11 Conventional 10-April-12 31-December-11

SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR

Total Return 135.59 133.00

0.5813 0.5625 0.8500 0.8900 0.9750 0.2403 0.3590

Duration Yield 3.84 3.59

0.5188 0.5625 0.8500 0.4300 0.9750 0.2953 0.9643

U.S. Treasuries (11 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 2,546.82 1,134.61 1,678.40 6,148.70 5,882.93 8,771.07 7,551.88

Spread

Life

Coupon Total Market Cap

100.27 98.53

3-Month 12/04/12 31/12/11 0.8844 0.7800 0.8125 0.8125 1.2700 1.2583 1.3300 1.1000 1.5363 1.5200 0.4687 0.5810 0.6650 1.2921

Price 0.080 99.922 99.844 100.602 99.750 98.734

Price Change -0.003 0.004 0.004 0.027 0.070 0.102

1 Day Change -0.6% -0.1% -0.4% 0.3% 0.4% -0.1% 0.3%

YTD Change 5.4% -0.9% 23.5% 6.0% 3.7% -0.2% 18.0%

4.91 5.06

179.53 142.39

5.47 5.63

933.03 808.83

12/04/12 1.0929 1.3125 1.9750 2.3800 1.9863 1.0507 1.3556

1-Year

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

Current Yield (%) Yield Change (%) 0.084 0.000 0.292 0.020 0.429 0.000 0.877 -0.554 2.029 -0.346 3.192 -0.129

Crude Oil Brent WTI OPEC

Price 120.27 102.88 119.38

1 Day ∆ 0.07% 0.18% -0.85%

Gold Spot $/OZ

Price 1,658.05

1 Day ∆ -0.06%

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

0.2782 (0.0002)

SAR

3.7502 (0.0004)

BHD

0.3770

QAR

3.6408 (0.0003)

OMR

0.3850

0.0000

AED

3.6730

0.0000

EUR/USD 1.3141

0.0022

JPY

80.9500 (0.0300)

USD 5-Year CDS Abu Dhabi Dubai

0.0000

YTD Change

118.255

-7.4%

350.880

-22.9%

Bahrain 359.445

-6.8%

Qatar

121.435

-5.5%

Saudi

119.425

-7.2%

Egypt

642.645

-3.4%

Lebanon 453.575

1.5%

Turkey

244.875

-17.9%

China

116.070

-22.0%

France

185.105

-18.4%

Germany 73.360

-28.1%

Japan

103.170

-29.2%

UK

65.530

-33.5%

US

29.570

-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.


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