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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 25 March 2012 News Update Select GCC Bond and Sukuk Prices (23 March 2012) Kuwait's GDP Soars 4.5% In 2011- Kuwait's GDP jumped by 4.5% in Type Name Maturity Size (Mn) Rating 2011 over the growth of oil prices that hit $107 per barrel by the end of Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 the year. Kuwait International Bank’s report attributed oil price hikes to Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 steadily growing global demand for the crude and OPEC’s decision to Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 maintain output ceiling unchanged. Data showed that backed by oil price Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 increases, Kuwait state budget achieved a remarkable KWD11.6bn surplus Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 in the first nine months of the fiscal year 2011-2012, compared with Bond Qatar Telecom 10-Jun-14 900 A/A2 KWD5.9bn surplus achieved during the same period a year earlier. The Bond Qatar Telecom 10-Jun-19 600 A/A2 report estimated Kuwait oil revenues, during the nine months of FY 2011- Sukuk Aldar Properties 27-May-14 1,500 BB-/B1 2012, at KWD18.7bn with regards to estimated expenditure of KWD7.1bn. Sukuk DP World Ltd 2-Jul-17 1,500 BBB-/Baa3

Bid Price 107.238 118.965 108.500 121.625 107.550 121.328 109.337 122.853 109.653 104.860

GCC To Post $1 Trillion Surpluses In Five Years- The GCC countries remain pivotal to any business strategy in the Middle East and its growing importance in the region’s business and trade activities cannot be ignored, according to Edmund O’Sullivan, Chairman, Middle East Economic Digest. He said while recession continues to pose concerns, the GCC countries are comparatively well entrenched having accumulated almost $1.5 trillion in surpluses since 2000. Besides, debt is generally low in these countries. "GCC states are forecasted by the IMF to generate at least $1 trillion worth of surpluses 2011-16. This is more than enough to finance all foreseeable infrastructure requirements and support continuing external investments."

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index

UAE Central Bank Rate Of Lending Growth 'Reasonable'- The rate of bank lending growth in the UAE is 'reasonable,' Central Bank Governor Sultan Nasser al-Suweidi said. 'Bank lending is going at a reasonable rate. The rate has been close to 3.5%, which is reasonable under the circumstances,' he said. He described the central bank's monetary policy as 'good', when asked the possibility of shifts in monetary policy, without elaborating. The 2008 global financial crisis exposed bank lending excesses in the oil-reliant UAE economy, bursting a property bubble and triggering a $25bn debt restructuring of Dubai World in 2010. However, most UAE banks have large capital cushions by international standards and they have been relatively unscathed by the euro zone debt crisis because they have only minor exposure to Europe.

SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR

ENBD Gets $3 Bn In Bids For New Bond- Emirates NBD's new $1bn dollar bond sale reportedly received $3bn in bids from investors. Investors from the MENA comprised 49% of some 205 buyers in the five-year note, which was priced to yield 337.5bps above the mid-swap rate. Some 19% of investors were from Asia, 15% from Europe, 14% from the UK and 3% from offshore US. Banks and retail investors bought 54% of the bonds, while funds purchased 33%, insurance companies and central banks 6%, hedge funds 4% and others 3%. The bank had mandated Bank of America, Merrill Lynch, Deutsche Bank, Emirates NBD Capital, HSBC and NBAD, as joint lead managers and joint book runners for the USD Reg S transaction.

Sukuk 22-March-12 31-December-11 Conventional 22-March-12 30-December-11

Total Return 136.28 133.00 145.47 141.59

3.48 3.59

3.95 4.31

279.76 312.20

Clean Price 3.86 97.04 3.99 95.79

5.33 5.26

4.67 5.07

279.01 322.59

7.40 7.31

Duration Yield

Spread

Life

Ask Price 107.754 119.619 109.000 122.125 108.093 122.205 109.948 123.571 110.225 105.377

Bid Yield 1.517% 3.485% 1.242% 3.279% 2.066% 4.130% 2.131% 4.167% 5.923% 5.181%

Ask Yield 1.270% 3.390% 1.005% 3.208% 1.814% 4.003% 1.862% 4.064% 5.655% 5.071%

Coupon Total Market Cap

100.10 98.53

5.02 5.06

157.60 142.39

5.51 5.63

911.28 808.83

Interbank Rates (%) 1-Month 25/03/12 31/12/11 0.5675 0.5188 0.5625 0.5625 0.8417 0.8500 0.8100 0.4300 0.9750 0.9750 0.2413 0.2953 0.3646 0.9643

U.S. Treasuries (23 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 2,586.53 1,148.01 1,668.07 6,231.00 5,896.35 8,684.01 7,616.01

Price 0.070 99.805 99.508 99.008 97.953 96.594

1 Day Change 0.0% -0.1% -1.5% 0.0% 0.4% -0.4% -1.3%

3-Month 25/03/12 31/12/11 0.8713 0.7800 0.8125 0.8125 1.2667 1.2583 1.0000 1.1000 1.5363 1.5200 0.4732 0.5810 0.7099 1.2921 Price Change -0.003 0.027 0.059 0.184 0.414 1.016 YTD Change 7.7% 0.3% 21.4% 7.1% 4.0% -1.5% 17.2%

25/03/12 1.0863 1.3125 1.9500 2.3300 1.9863 1.0521 1.4175

1-Year

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

Current Yield (%) Yield Change (%) 0.074 -0.001 0.354 -3.210 0.544 -3.229 1.084 -3.264 2.233 -2.038 3.306 -1.634

Crude Oil Brent WTI OPEC

Price 125.13 106.87 121.79

1 Day ∆ 1.62% 1.44% -0.91%

Gold Spot $/OZ

Price 1,661.50

1 Day ∆ 0.97%

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

0.2785 (0.0002)

SAR

3.7502 (0.0002)

BHD

0.3770 (0.0000)

QAR

3.6413

OMR

0.3843 (0.0008)

AED

3.6730

0.0000

EUR/USD 1.3270

0.0086

JPY

82.3500 (0.0500)

USD 5-Year CDS Abu Dhabi Dubai

0.0002

YTD Change

117.310

-11.9%

339.995

-23.8%

Bahrain 357.850

-4.9%

Qatar

117.500

-11.7%

Saudi

118.160

-10.1%

Egypt

557.085

-14.1%

Lebanon 48.960

-1.6%

Turkey

223.335

-28.1%

China

110.325

-34.1%

France

175.315

-29.0%

Germany 74.500

-34.7%

Japan

104.080

-28.6%

UK

64.000

-40.5%

US

31.000

-33.9%

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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