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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 21 May 2012 News Update Select GCC Bond and Sukuk Prices (18 May 2012) National Industries Group To Launch $358 Mn Financing- National Type Name Maturity Size (Mn) Rating Industries Group Holding (NIG) said on it has appointed banks to raise Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 more than KWD100mn ($358mn) in a Shariah-compliant syndicated loan. Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 "Lead arranger (Warba Bank) will invite local, Gulf and international banks Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 to participate in this financing," NIG said. “It comes in line with the Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 strategy and objectives of the bank to support the local economy and local Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 companies," it added, saying the operation would be compliant with Bond Qatar Telecom 10-Jun-14 900 A/A2 Islamic law. It did not give further details on the use of the proceeds. Bond Qatar Telecom 10-Jun-19 600 A/A2 Gulf Finance House Says $110 Mn Sukuk Restructuring ApprovedGulf Finance House, the struggling Bahraini investment company, said holders of a $110mn sukuk have agreed to extend repayment of the debt over six years. More than 92% of sukuk-holders voted in favor of the restructuring. The new terms give GFH until June of 2018 to repay the debt. The deal also comes with a two-year "grace period" for principal repayments this year and in 2013. Dubai Raises Borrowing From ENBD As European Banks RetreatDubai's government has been steadily increasing its borrowing from statecontrolled Emirates NBD, the largest listed bank in the emirate by assets, as the emirate seeks new sources of funding at a time when European and other international banks are curtailing lending to the region. Though Dubai has successfully tapped the capital markets on several occasions since the financial crisis began to bite in late 2008, most recently with a $1.25bn sukuk issue in April, its borrowing from Emirates NBD has continued to rise. In the bank's last financial statements, the borrowing had reached AED62.18bn ($16.94bn), or almost a third of the bank's total loan book, putting it in apparent breach of new central bank limits on exposures to government borrowers. IMF: UAE Government Firms’ Refinancing Is A ChallengeRefinancing the debts of the UAE government-related entities remains a challenge made more difficult as European banks trim their activities in the region, the IMF said. State-owned companies in the UAE, one of the world’s top five oil exporters, face $30bn of maturing debt this year with over $68bn more in 2013-2015. Saudi To Buy $500 Mn Egyptian Treasury Bills- Saudi Arabia will buy $500mn worth of Egyptian treasury bills by June 1, extending its pledge to support the country's economy post revolution, Egypt's ministry of finance said. Finance Minister Momtaz el Saied said that the government is also currently in negotiations with the central bank to deposit a $1bn loan already obtained by the Saudi government to support its budget. The rest of the Saudi support package includes $500mn for financing government projects, $200mn as a grant directed to small and medium-size enterprises and $250mn to finance petroleum imports from the kingdom.

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 106.149 119.649 108.625 123.250 107.525 122.801 108.835 122.689 BB-/B1 108.943 BBB-/Baa3 105.102

Ask Price 106.738 120.434 109.000 124.250 108.124 123.768 109.426 123.590 109.622 105.852

Bid Yield 1.799% 3.328% 0.846% 2.982% 1.805% 3.854% 2.064% 4.130% 5.959% 5.101%

Ask Yield 1.492% 3.213% 0.655% 2.840% 1.506% 3.713% 1.784% 3.999% 5.616% 4.938%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 18-May-12 31-December-11 Conventional 18-May-12 31-December-11

Total Return 137.42 133.00 146.75 141.59

3.89 3.59

4.10 4.31

295.19 312.20

Clean Price 4.44 97.15 3.99 95.79

5.26 5.26

4.60 5.07

299.05 322.59

7.17 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

100.22 98.53

4.96 5.06

192.47 142.39

5.38 5.63

935.73 808.83

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

1-Month 21/05/12 31/12/11 0.5988 0.5188 0.5625 0.5625 0.8275 0.8500 0.8900 0.4300 0.9750 0.9750 0.2398 0.2953 0.3411 0.9643

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

Coupon 0.000 0.250 0.250 0.875 1.750 3.000

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

Last Close 2,467.85 1,151.52 1,475.58 6,429.09 5,656.77 8,455.33 6,966.37

3-Month 21/05/12 31/12/11 0.9088 0.7800 0.8125 0.8125 1.2675 1.2583 1.3300 1.1000 1.5338 1.5200 0.4669 0.5810 0.6107 1.2921

Price 0.075 99.898 99.500 100.563 99.969 103.234

Price Change -0.003 -0.014 -0.020 -0.051 -0.273 -0.656

1 Day Change -0.2% -0.2% -0.6% -0.1% -0.7% -0.6% 0.2%

YTD Change 2.5% 0.4% 8.4% 10.5% -1.3% -4.3% 8.8%

21/05/12 1.1181 1.3125 2.0000 2.3800 1.9813 1.0690 1.2511

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 0.305 3.101 0.420 1.963 0.760 1.496 1.754 1.787 2.841 1.202

Crude Oil Brent WTI OPEC

Price 107.88 91.88 107.10

1 Day ∆ 0.69% 0.44% -0.96%

Gold Spot $/OZ

Price 1,596.60

1 Day ∆ 0.24%

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

0.2793 (0.0003)

SAR

3.7503

0.0001

BHD

0.3770

0.0000

QAR

3.6410 (0.0002)

OMR

0.3848

0.0003

AED

3.6730

0.0000

EUR/USD 1.2787

0.0007

JPY

0.1800

79.2000

USD 5-Year CDS Abu Dhabi Dubai

YTD Change

131.625

3.2%

395.620

-11.1%

Bahrain 372.500

-2.8%

Qatar

131.830

3.5%

Saudi

130.000

1.1%

Egypt

655.000

2.4%

Lebanon 467.500

-0.9%

Turkey

277.425

-4.8%

China

138.010

-6.2%

France

223.000

1.4%

Germany 100.500

-1.6%

Japan

111.490

-22.2%

UK

73.500

-24.6%

US

44.500

-9.1%

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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