Page 1

Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 14 March 2012 News Update Select GCC Bond and Sukuk Prices (13 March 2012) UAE Not To Issue Sovereign Bond For At Least 2 Years- The UAE is Type Name Maturity Size (Mn) Rating not planning to issue its first federal sovereign bond for at least two years, Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 Finance Minister Sheikh Hamdan bin Rashid al-Maktoum said, dousing Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 market expectations for an issue this year. Other senior ministry officials Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 had previously been quoted as saying the UAE’s debut sovereign bond Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 could come at the end of 2012, once a long-awaited public debt law is Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 approved, and be worth about $1bn. Bahrain Credit Risk Rises As Protests Irk Investors- Bahrain’s credit risk is rebounding from a four-month low after anti-government rallies stoked foreign investor concern the Persian Gulf state won’t overcome last year’s protests. The cost to insure Bahrain’s debt against non-payment for five years climbed 6bps since falling to 366 on March 8. A day later, demonstrators held one of its largest rallies on a major highway outside the capital Manama, pushing credit default swaps to 371 yesterday, according to data provider CMA. That’s double what it was before the Arab uprisings started early last year. The smallest GCC economy is set to grow at the region’s slowest pace in 2012. Mubadala: Supportive Of Aldar, Sorouh Merger If Value AddingAbu Dhabi government-controlled investment firm Mubadala Development Co. said it is "supportive" of a proposed merger between its 49%-owned Aldar Properties and Sorouh Real Estate if it benefits shareholders. "As a long-term shareholder in Aldar, Mubadala is supportive of efforts to increase value to Aldar's stakeholders," Mubadala said. In a joint statement late Sunday, Aldar and Sorouh said they are studying a possible merger, a combination they say has the backing of the government. Based on Tuesday's closing share prices, a combined company would have a total market cap of about $2.5bn and a total $15bn in assets. Emirates NBD requests Withdrawal Of Dubai Bank's RatingsEmirates NBD announced today that the company has requested Fitch and Moody's to withdraw their ratings on Dubai Bank. Following the completion of the takeover of Dubai Bank by Emirates NBD, all capital and medium term funding requirements for Dubai Bank are managed under the Group umbrella and accordingly credit ratings are no longer required for this entity. Dubai Bank has no outstanding debt rated by either Fitch or Moody's and therefore creditors are unaffected by this decision. DP World Rallies On Dubai Growth, Rising Trade- Yields on DP World’s Islamic bonds fell to the lowest level since September as the world’s fourth-biggest port operator benefits from a pickup in trade in the UAE and demand for higher-yielding assets. Yields on the company’s 6.25% sukuk due July 2017 have declined 67bps this year to 5.25%, the lowest since Sept. 9. That outpaced the 30bps drop in average yields on Islamic bonds from the GCC, according to the HSBC/Nasdaq Dubai GCC US Dollar Sukuk Index.

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 107.484 119.006 108.875 121.500 107.586 120.089 A/A2 109.425 A/A2 122.550 BB-/B1 109.459 BBB-/Baa3 104.421

Ask Price 108.060 119.651 109.625 122.250 108.202 120.923 110.097 123.272 110.139 104.892

Bid Yield 1.441% 3.487% 1.115% 3.307% 2.090% 4.320% 2.138% 4.220% 6.061% 5.278%

Ask Yield 1.170% 3.394% 0.765% 3.200% 1.807% 4.198% 1.846% 4.117% 5.746% 5.178%

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

Total Return 135.83 133.00 144.97 141.59

3.51 3.59

4.01 4.31

301.31 312.20

Clean Price 3.89 96.85 3.99 95.79

5.34 5.26

4.89 5.07

293.76 322.59

7.43 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

99.85 98.53

5.02 5.06

157.21 142.39

5.51 5.63

909.73 808.83

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

1-Month 14/03/12 31/12/11 0.5650 0.5188 0.5625 0.5625 0.8250 0.8500 0.8100 0.4300 0.9750 0.9750 0.2418 0.2953 0.4086 0.9643

U.S. Treasuries (13 March 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.375 0.875 2.000 3.125

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

Last Close 2,623.02 1,149.77 1,667.38 6,150.20 5,901.82 8,634.19 7,539.70

Price 0.080 99.805 99.578 99.367 98.609 96.609

1 Day Change 0.0% 0.2% 0.9% 0.0% 0.9% -0.1% -0.2%

3-Month 14/03/12 31/12/11 0.8663 0.7800 0.8125 0.8125 1.2625 1.2583 1.0000 1.1000 1.5363 1.5200 0.4736 0.5810 0.7933 1.2921 Price Change -0.003 -0.004 -0.020 -0.105 -0.258 -0.695 YTD Change 9.2% 0.8% 24.3% 5.8% 4.6% -1.7% 17.2%

14/03/12 1.0750 1.3125 1.9625 2.3300 1.9863 1.0564 1.5121

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 0.352 1.191 0.518 1.548 1.007 2.316 2.157 1.415 3.305 1.185

Crude Oil Brent WTI OPEC

Price 126.13 106.64 123.88

1 Day ∆ -0.07% -0.07% -0.22%

Gold Spot $/OZ

Price 1,677.30

1 Day ∆ 0.21%

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

0.2787 (0.0001)

SAR

3.7502

BHD

0.3770 (0.0000)

QAR

3.6410 (0.0002)

OMR

0.3850 (0.0000)

AED

3.6729

0.0000

0.0000

EUR/USD 1.3056 (0.0054) JPY

83.2800

USD 5-Year CDS Abu Dhabi Dubai

0.5900 YTD Change

123.050

-3.5%

355.000

-20.2%

Bahrain 365.815

-4.5%

Qatar

122.870

-3.6%

Saudi

126.190

-1.8%

Egypt

572.326

-10.5%

Lebanon 476.800

1.1%

Turkey

218.100

-25.1%

China

109.940

-25.3%

France

179.990

-18.1%

Germany 74.750

-26.8%

Japan

106.500

-25.6%

UK

61.750

-36.7%

US

33.570

-31.4%

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 14032012  

DFIU 14032012

Advertisement