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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 15 February 2012 News Update Select GCC Bond and Sukuk Prices (14 February 2012) QNB Finance Prices $1 Bn Bond To Yield 3.456%- QNB Finance, a Type Name Maturity Size (Mn) Rating Bid Price subsidiary of Qatar National Bank, will raise $1bn through the sale of a Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 107.267 five-year bond, priced to yield 3.456%. The bond received strong demand Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 118.782 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 108.250 and has a coupon of 3.375% to be paid semi-annually. Barclays Capital, Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 121.625 Citigroup, HSBC, QNB Capital and Standard Chartered are joint Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 107.720 bookrunners on the bond issue. QNB is rated Aa3 by Moody's and A+ by Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 119.761 S&P and Fitch. NBAD Plans To Use Own Cash To Repay AED 2.8 Bn of BondsNational Bank of Abu Dhabi, the UAE‟s second-biggest bank by assets, plans to repay about AED2.8bn ($762mn) of bonds maturing this year with its own cash, its GM said. “The 2012 maturing debt will be repaid from existing resources,” Stephen Jordan, GM of liquidity management & interest rates product group, said. “We will naturally continue to monitor opportunities in global markets as part of our ongoing strategy to diversify the funding base and extend the liability maturity profile.” Dolphin’s $1.3 Bn Bond Gains On Abu Dhabi Link- The yield on Dolphin Energy Ltd. bonds, which attracted eight times the amount sought in a $1bn sale, declined in the week since their issue, evidence of investor appetite for Abu Dhabi debt. The rate on the 5.5% dollar bond due December 2021 fell 36bps from its offer price to 5.15% yesterday. Owned by Mubadala Development Co., an investor backed by the government of the UAE capital, the company that transports natural gas was enticed to increase the size of its issue by $300mn after getting bids valued at $8.6bn. About half of the investors were U.S.-based. S&P: Rising Tensions Pose Credit Risks To Gulf- Rising tension between Iran and the West is increasing political and economic risks for sovereign and corporate issuers in the Middle East and focusing attention on the key role of the Strait of Hormuz in trade for the Gulf, says S&P in a series of three new reports. “At this time, we think the current developments in relation to Iran are captured in our ratings on countries and corporate issuers in the region and so we do not expect any immediate actions,” S&P said. Gulf Sales To Trail Malaysia Fifth Year- The Gulf may trail Malaysia in Islamic bond sales for a fifth year as the lack of central regulation and standardization slows sukuk offerings, according to OCBC Al-Amin Bank Bhd. and Mashreq Al Islami. Borrowers in the GCC issued 20% of the $36.3bn sukuk sold worldwide in 2011. Malaysia, where sales amounted to more than 70% of the global Islamic debt market, has regulations and products approved by the central bank and a centralized Shariah law board. “In the GCC, many banks cannot agree on what is or isn‟t Shariah compliant, let alone agreeing on a national level or across the Gulf,” Khalid Howladar, a credit officer at Moody‟s, said.

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

A/A2 A/A2 BB-/B1 BBB-/Baa3

108.993 122.564 109.445 103.960

Ask Price 107.783 119.490 109.000 122.125 108.152 120.606 109.571 123.344 109.980 104.854

Bid Yield 1.667% 3.546% 1.548% 3.319% 2.150% 4.395% 2.457% 4.247% 6.209% 5.388%

Ask Yield 1.432% 3.444% 1.208% 3.248% 1.958% 4.272% 2.212% 4.137% 5.968% 5.200%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 10-February-12 31-December-11 Conventional 10-February-12 30-December-11

Total Return 134.14 133.00 143.31 141.59

3.59 3.59

4.27 4.31

329.72 312.20

Clean Price 3.97 96.04 3.99 95.79

5.39 5.26

4.90 5.07

311.29 322.59

7.51 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

99.13 98.53

5.02 5.06

155.50 142.39

5.53 5.63

880.25 808.83

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

1-Month 15/02/12 31/12/11 0.5356 0.5188 0.5625 0.5625 0.8667 0.8500 0.6300 0.4300 0.9813 0.9750 0.2475 0.2953 0.5621 0.9643

U.S. Treasuries (14 February 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.250 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 2,466.03 1,143.11 1,521.56 5,946.00 5,589.07 8,686.76 6,831.56

3-Month 15/02/12 31/12/11 0.8325 0.7800 0.8125 0.8125 1.2750 1.2583 1.0300 1.1000 1.5425 1.5200 0.4976 0.5810 0.9829 1.2921

Price 0.060 99.938 99.578 100.219 100.391 100.469

Price Change -0.048 0.004 -0.004 -0.066 -0.180 -0.250

1 Day Change 1.0% -0.1% 1.2% 1.1% 0.3% 0.1% -0.2%

YTD Change 3.6% -0.1% 13.7% 3.4% -1.5% -1.0% 6.2%

15/02/12 1.0600 1.3125 1.9750 2.2400 1.9863 1.0676 1.6607

1-Year

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

Current Yield (%) Yield Change (%) 0.064 -41.867 0.284 0.017 0.393 0.707 0.831 1.771 1.958 1.066 3.103 0.479

Crude Oil Brent WTI OPEC

Price 118.08 101.72 117.19

1 Day ∆ 0.62% 0.97% 0.67%

Gold Spot $/OZ

Price 1,725.61

1 Day ∆ 0.33%

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

0.2780

SAR

3.7502 (0.0001)

BHD

0.3770

0.0000

QAR

3.6413

0.0000

OMR

0.3850

0.0000

AED

3.6730

0.0000

EUR/USD 1.3167

0.0049

JPY

0.0600

78.4800

USD 5-Year CDS Abu Dhabi Dubai

131.475

0.0007

YTD Change

3.1%

395.000 -11.2%

Bahrain 395.000

3.1%

Qatar

131.000

2.8%

Saudi

131.845

2.6%

Egypt

626.325

-2.1%

Lebanon 492.090

4.3%

Turkey

264.500

-9.2%

China

125.660 -14.6%

France

189.415 -13.8%

Germany 85.825

-16.0%

Japan

129.380

-9.7%

UK

75.945

-22.1%

US

39.860

-18.6%

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 15022012