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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 3 July 2012 News Update Select GCC Bond and Sukuk Prices (2 July 2012) Dubai’s Majid Al Futtaim Said to Get $3 Billion Bids for Bonds Type Name Maturity Size (Mn) Rating Majid Al Futtaim Holding LLC, an operator of malls and hotels in the Middle Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 East, received $3 billion in bids for the $500 million bonds it sold Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 yesterday, according to a banker familiar with the transaction. Investors Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 from the U.K. made up 36 percent of the bids, while 25 percent were from Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 Europe, 19 percent from the Middle East and 20 percent from Asia, said Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 the banker, who asked not to be identified because the information is Bond Qatar Telecom 10-Jun-14 900 A/A2 private. Fund managers bought 70 percent, banks 16 percent, private Bond Qatar Telecom 10-Jun-19 600 A/A2 lenders 11 percent and insurance companies 3 percent. Kuwait CMA says will delist Global Invest House if losses not written off by Sept. 30- Kuwait's Capital Markets Authority, or CMA, said it will delist Global Investment House from the local bourse before Sept. 30 if it doesn't write off its accumulated losses as at the end of 2011, adding further pressure on the investment bank that is struggling to restructure its debts. Qatar government debt rises to 33 percent of nominal GDP- Driven by a rise in external borrowing, the Qatari government debt rose to QR209.3bn excluding guarantees in the financial year 2011/13. The figure is estimated at 33.1 percent of nominal GDP. External debt includes medium- to long-term foreign currency sovereign bond issue and loans from foreign banks. The government sold $5bn of such bonds in November 2011 - the first global issue since it tapped the international market in November 2009 - to help finance the Barzan gas project. StanChart working on 4 sukuks in Gulf- Standard Chartered bank is arranging up to four sukuks in the Gulf region, said a senior official. Afaq Khan, CEO of Standard Chartered's Islamic banking unit, said the bank is involved in 3-4 corporate and sovereign sukuks likely to be issued this year. Khan was speaking on the sidelines of a forum organised by Institute of Chartered Accountants of India (ICAI) in Dubai on Wednesday night. "There are 3-4 sukuk deals in the pipeline that Standard Chartered is working in the region. These are UAE dirham, US dollar and Malaysian ringgit denominated sukuks to be issued by corporates and sovereigns," Khan said. Standard Chartered has recently been involved in sukuk issuances of DIFC Investments , Sharjah Islamic Bank, JAFZA and MAF. Egypt’s Sukuk Sale May Falter on Currency Risk - Egypt, where the first democratically elected president was sworn into office on June 30, may struggle to attract investors to any Islamic bonds it issues amid concern the nation’s currency may decline further. The Muslim Brotherhood party had been working on draft legislation to allow for the sale of Shariah-compliant notes before its candidate, Mohamed Mursi, won elections last week.

Sukuk Aldar Properties Sukuk DP World Ltd

27-May-14 2-Jul-17

1,500 1,500

Bid Price 107.235 118.996 107.988 125.540 107.496 127.797 109.110 123.588 BB-/B1 109.737 BBB-/Baa3 107.607

Ask Price 107.747 119.641 108.563 125.803 108.014 129.302 109.646 123.554 110.414 108.139

Bid Yield 1.490% 3.475% 0.932% 2.607% 1.607% 3.087% 1.702% 3.959% 3.970% 4.532%

Ask Yield 1.243% 3.381% 0.792% 2.573% 1.336% 2.877% 1.438% 3.813% 3.659% 4.416%

HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index Sukuk 26-June-12 31-December-11 Conventional 26-June-12 30-December-11

Total Return 140.192 133.00 150.040 141.59

3.87 3.59

3.66 4.31

263.192 312.20

Clean Price 4.36 98.63 3.99 95.79

5.26 5.26

4.20 5.07

269.06 322.59

7.08 7.31

Duration Yield

Spread

Life

Coupon Total Market Cap

101.96 98.53

4.87 5.06

208.06 142.39

5.38 5.63

953.98 808.83

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

1-Month 3/07/12 31/12/11 0.6125 0.5188 0.6875 0.5625 0.8833 0.8500 0.9500 0.4300 0.9687 0.9750 0.2447 0.2953 0.3720 0.9643

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

Coupon 0.000 0.250 0.375 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 2,458.35 1,121.11 1,464.57 5,878.76 5,621.89 8,206.91 6,742.04

3-Month 3/07/12 31/12/11 0.9375 0.7800 0.9375 0.8125 1.2750 1.2583 1.2357 1.1000 1.495 1.5200 0.4606 0.5810 0.6520 1.2921

Price 0.09 99.29+ 99-31 100-12¼ 99-20+ 106-03+

Price Change 0.005 -0-00 -0-00 -0-00 -0-01 2.70

1 Day Change - 0.1% 0.1% 0.1% 0.4% -0.5% -0.7% 0.5%

YTD Change -9.2% -14.9% -5.7% -4.6% -4.3% -5.2% 1.2%

3/07/12 1.1300 1.5000 1.9550 1.7428 1.9300 1.0695 1.2130

1-Year

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

Current Yield (%) Yield Change (%) 0.09 0.005 0.29 0.000 0.29 0.000 0.67 -0.002 1.05 0.005 -0-02 -0.004

Crude Oil Brent WTI OPEC

Price 98.24 84.50 92.99

1 Day ∆ 0.90% 0.73% 2.07%

Gold Spot $/OZ

Price 1,604.05

1 Day ∆ 6.95%

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

0.2802

(0.0002)

SAR

3.7502

0.0001

BHD

0.3770 (0.0001)

QAR

3.6411

OMR

0.3850 (0.0004)

AED

3.6730 (0.0001)

0.0110

EUR/USD 1.2599

0.0014

JPY

0.0003

79.7300

USD 5-Year CDS Abu Dhabi Dubai

128.500

YTD Change 0.7%

353.1834 -18.8%

Bahrain 342.755

-10.5%

Qatar

128.260

-3.3%

Saudi

124.260

-3.4%

Egypt

607.2

-5.0%

Lebanon 485.360

2.8%

Turkey

235.720

-19.0%

China

117.000

-20.5%

France

182.645

-16.9%

Germany 97.340

-4.7%

Japan

91.865

-35.8%

UK

67.250

-31.0%

US

47.705

-2.5%

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.


GCC Daily Fixed Income Update 03072012  

GCC Daily Fixed Income Update 03072012

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