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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 26 July 2012 News Update Select GCC Bond and Sukuk Prices (25 July 2012) S&P affirms Qatar's sovereign credit ratings- S&P affirmed 'AA/AType Name Maturity Size (Mn) Rating 1+' sovereign credit ratings on the State of Qatar. The stable outlook Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 balances S&P’s view of Qatar's high economic wealth and strong fiscal Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 position against its institutional shortcomings, limited monetary flexibility, Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 and its banks' increasing dependence on external financing. Rating Action Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 On July 25, 2012, Standard & Poor's Ratings Services affirmed its long- and Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 short-term foreign and local currency sovereign credit ratings on the State Bond Qatar Telecom 10-Jun-14 900 A/A2 of Qatar at 'AA/A-1+'. The outlook is stable. The transfer & convertibility Bond Qatar Telecom 10-Jun-19 600 A/A2 assessment is 'AA+' IPIC Yield Drop Opens Funding Window as Costs Soar- Record-low bond yields are giving International Petroleum Investment Co. a window to raise financing as costs climb at projects including a refinery in the United Arab Emirates. The yield on IPIC’s 5.5 percent dollar-denominated bonds due March 2022 slid 152 basis points this year to a record 3.95 percent on July 24. That beat a drop in the HSBC/Nasdaq Dubai Middle East Conventional U.S. Dollar Bond Index, which fell 93 basis points to an alltime low of 4.22 percent on July 20. DIFC sub-economy GDP grew by 7% in 2011- The Dubai International Financial Centre (DIFC) yesterday issued its fifth annual Economic Activity Survey Report which showed that the GDP of the centre’s sub-economy grew 7 per cent to $3.13 billion (Dh11.49 billion) in 2011 from $2.92 billion in 2010. The report estimates the DIFC’s contribution to the UAE’s non-hydrocarbon GDP is approximately 1.4 per cent. Jordan keeps credit rating, but outlook negative- Standard & Poor's (S&P) on Wednesday affirmed its long- and short-term foreign and local currency sovereign credit ratings on Jordan at 'BB/B' with a negative outlook. The recovery rating is "4". The transfer and convertibility assessment is "BBB-". The international rating agency said in a statement e-mailed to The Jordan Times that Jordan's ratings are constrained by the vulnerability of its economy to regional economic and political shocks, and by its limited fiscal flexibility. NIOC head calls for raising profits on bonds- The managing director of the National Iranian Oil Company (NIOC) has called for increasing profits on bonds which are issued to finance the oil industry's projects. Ahmad Qalebani has said that issuing bonds with even 25 percent profit is economically justified, the IRNA News Agency reported on Monday. Iran plans to sell one trillion rials (some $820 million) worth of bonds in the current calendar month of Mordad (July 22-August 21) to finance the South Pars gas field projects, the Shana News Agency reported. On June 26, Iran also issued 5 trillion rilas (some $410 million) in bonds for the same purpose.

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 106.257 124.417 107.469 125.890 107.407 128.327 108.915 127.890 BB-/B1 109.316 BBB-/Baa3 109.962

Ask Price 106.736 125.167 107.888 126.613 107.967 129.333 109.575 129.088 109.963 109.589

Bid Yield 1.451% 2.569% 1.054% 2.524% 1.510% 2.977% 1.643% 3.304% 5.346% 4.218%

Ask Yield 1.180% 2.462% 0.817% 2.422% 1.205% 2.836% 1.305% 3.135% 4.995% 4.081%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 20-July-12 31-December-11 Conventional 20-July-12 30-December-11

Total Return 141.45 133.00 152.98 141.59

3.86 3.59

3.29 4.31

238.57 312.20

Clean Price 4.32 98.72 3.99 95.79

5.37 5.26

3.92 5.07

261.92 322.59

7.04 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

103.64 98.53

4.73 5.06

296.68 142.39

5.39 5.63

988.27 808.83

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

1-Month 26/07/12 31/12/11 0.6100 0.5188 0.6875 0.5625 0.8467 0.8500 0.9500 0.4300 0.8820 0.9750 0.2442 0.2953 0.1690 0.9643

U.S. Treasuries (25 July 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.250 0.750 1.750 3.000

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

Last Close 2,470.11 1,109.77 1,501.14 5,751.27 5,398.87 8,228.09 6,666.80

3-Month 26/07/12 31/12/11 0.9462 0.7800 0.9375 0.8125 1.2383 1.2583 1.2071 1.1000 1.4287 1.5200 0.4481 0.5810 0.4435 1.2921

Price 0.10 99-26+ 99-28+ 99-21 ½ 103-04 111-12 ½

Price Change 0.000 0-00 0-00 0-00 -0-03+ -0-04

1 Day Change 0.25% 0.16% 0.03% -0.69% -0.02% -0.05% -0.05%

YTD Change -7.62% -14.62% -0.69% -5.54% -9.20% -2.01% 2.93%

26/07/12 1.1275 1.5000 1.9050 1.7428 1.8125 1.0615 0.9940

1-Year

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

Current Yield (%) Yield Change (%) 0.10 0.000 0.22 0.000 0.28 -0.002 0.57 -0.011 1.41 0.012 2.46 0.006

Crude Oil Brent WTI OPEC

Price 104.01 88.58 100.51

1 Day ∆ -0.37% -0.39% 0.44%

Gold Spot $/OZ

Price 1,606.10

1 Day ∆ 1.65%

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

0.2820 (0.0001)

SAR

3.7503

BHD

0.3770

0.0000

QAR

3.6410

0.0000

OMR

0.3847 (0.0002)

AED

3.6729 (0.0001)

0.0001

EUR/USD 1.2149

0.0029

JPY

78.18

0.0002

USD 5-Year CDS

YTD Change

Abu Dhabi Dubai

114.930

-9.86%

349.476 -19.72%

Bahrain 344.270 -10.16% Qatar

115.000

-9.75%

Saudi

105.685 -17.79%

Egypt

610.610

-4.55%

Lebanon 500.230

6.04%

Turkey

215.500 -26.03%

China

122.730 -16.61%

France

182.800 -16.85%

Germany 81.790

-19.95%

Japan

96.500

-32.62%

UK

61.565

-36.86%

US

49.500

1.08%

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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