Page 1

Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 30 April 2012 News Update Select GCC Bond and Sukuk Prices (27 April 2012) Kuwait Al Imtiaz Repays KWD 63 Mn Debt To Kuwait Finance Type Name Maturity Size (Mn) Rating House- Kuwait's shariah-compliant Al Imtiaz Investment Group settled two Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 weeks ago KWD63mn ($226.9mn) of debt owed to Kuwait Finance House. Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 This reflects the solid financial position of the group and its ability to meet Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 its obligations on time, Ali Al Zubaid, Al Imtiaz' MD said. Al Imtiaz will use Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 KWD8mn of the KWD25mn loan that it has recently borrowed from Ahli Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 United Bank to develop and restructure one of its contracting subsidiaries, Bond Qatar Telecom 10-Jun-14 900 A/A2 he said, adding that the remainder will be used to assist some of the Bond Qatar Telecom 10-Jun-19 600 A/A2 group's other subsidiaries. Sukuk Aldar Properties 27-May-14 1,500 BB-/B1 Some Dubai GREs Could Still Face Refinance Problems This YearCapital Economics says the high level of interest in the Dubai government's sukuk last week is a sign of renewed confidence in the emirate's sovereign debt, but since no funds will be allocated to GREs, some could still face refinancing difficulties this year. Dubai said its two-tranche, $1.25bn sukuk was more than 3.5 times oversubscribed. "The problem for the emirate's economy however is that many of the GREs will continue to restructure their bank loans, which in turn will carry on affecting bank balance sheets. What's more, with cash flow problems, the GREs' trade creditors are likely to face delayed payments. Accordingly, the UAE's banks will probably remain cautious for the foreseeable future. This will ensure that credit conditions remain tight, adding to the headwinds facing Dubai's economy." Islamic Finance Rules Set For Major Review- Islamic finance may face its biggest shake-up in years as a top standard-setting body seeks to reform the way the industry does business, including the role of highly paid scholars in enforcing religious principles. Khaled Al Fakih, the new secretary-general of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), outlined plans for a sweeping review of its guidelines. Some of AAOIFI's reforms may prove controversial by challenging entrenched interests in the fast-growing business. Islamic financial assets hit $1.3 trillion globally last year, a 150% rise in the past five years as the industry expanded beyond core markets in the Middle East and Malaysia. "We would like to see insightful debate...that can help us develop standards that can benefit the industry." Gulf Debt Poised For 5th Monthly Gain- Islamic bonds in the GCC are headed for a fifth monthly gain as supply trails demand and Europe’s fiscal woes prompted investors to seek relatively safer assets in the oil-rich region. Sukuk in the GCC returned 0.6% this month, the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index shows. They gained 3.3% so far in 2012, outpacing the 3.1% increase for emerging-market sukuk, which pay asset returns instead of interest. Non-Shariah compliant Middle East bonds advanced 0.2% in April, according to JPMorgan Chase & Co. Slower-thanforecast US growth and Europe’s crisis are driving demand for sukuk, helping yields drop to the lowest in almost 8 months.

Sukuk DP World Ltd

2-Jul-17

1,500

Bid Price 106.972 119.887 108.500 123.875 107.441 122.625 108.994 122.959 109.745 BBB-/Baa3 106.003

Ask Price 107.486 120.543 109.000 124.375 107.969 123.446 109.586 123.796 110.402 106.664

Bid Yield 1.478% 3.315% 1.041% 2.919% 1.954% 3.904% 2.104% 4.113% 5.681% 4.918%

Ask Yield 1.220% 3.220% 0.793% 2.849% 1.697% 3.785% 1.831% 3.993% 5.361% 4.777%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 27-April-12 31-December-11 Conventional 27-April-12 31-December-11

Total Return 137.43 133.00 147.55 141.59

3.79 3.59

3.83 4.31

269.07 312.20

Clean Price 4.27 97.42 3.99 95.79

5.31 5.26

4.50 5.07

279.25 322.59

7.24 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

101.04 98.53

4.91 5.06

180.34 142.39

5.47 5.63

939.11 808.83

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

1-Month 30/04/12 31/12/11 0.5925 0.5188 0.5625 0.5625 0.8400 0.8500 0.8900 0.4300 0.9750 0.9750 0.2388 0.2953 0.3479 0.9643

U.S. Treasuries (27 April 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 2,512.17 1,145.24 1,651.90 6,337.00 5,839.19 8,661.46 7,607.59

3-Month 30/04/12 31/12/11 0.8963 0.7800 0.8125 0.8125 1.2740 1.2583 1.3300 1.1000 1.5363 1.5200 0.4659 0.5810 0.6421 1.2921

Price 0.085 99.984 99.984 100.242 100.578 100.047

Price Change -0.003 0.004 0.004 0.004 0.008 0.016

1 Day Change 0.0% 0.3% -0.8% 0.0% 0.5% 0.3% -0.7%

YTD Change 4.6% 0.4% 21.1% 9.0% 3.1% -1.0% 17.7%

30/04/12 1.0975 1.3125 1.9900 2.3800 1.9863 1.0472 1.3085

1-Year

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

Current Yield (%) Yield Change (%) 0.089 0.000 0.260 0.005 0.382 0.002 0.826 -0.003 1.936 -0.001 3.123 0.000

Crude Oil Brent WTI OPEC

Price 119.61 104.90 117.14

1 Day ∆ -0.18% -0.03% 0.94%

Gold Spot $/OZ

Price 1,664.80

1 Day ∆ 0.14%

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

0.2776 (0.0002)

SAR

3.7503

0.0001

BHD

0.3770

0.0000

QAR

3.6408

0.0003

OMR

0.3850

0.0000

AED

3.6730

0.0000

EUR/USD 1.3254 (0.0001) JPY

80.1300 (0.1400)

USD 5-Year CDS Abu Dhabi Dubai

YTD Change

120.500

-5.5%

365.960

-17.8%

Bahrain 370.000

-3.4%

Qatar

122.630

-3.8%

Saudi

120.500

-6.3%

Egypt

608.340

-4.9%

Lebanon 451.270

-4.3%

Turkey

233.930

-19.7%

China

114.500

-22.2%

France

192.700

12.3%

Germany 83.625

-18.2%

Japan

96.665

-32.5%

UK

65.045

-33.3%

US

37.000

-24.4%

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 30042012  

DFIU 30042012