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Kuwait Financial Centre “Markaz” MENA Daily Fixed Income Report –6 August 2012 News Update Select MENA Bond and Sukuk Prices (3 August 12) Kuwait 2011-2012 income, surplus at record high- Kuwait, a Type Name Maturity Size (Mn) Rating Bid Price member of the Organization of Petroleum Exporting Countries (OPEC) has Sovereign posted record budget surplus and revenues in the 2011-2012 fiscal year Bond State of Qatar 20-Jan-17 2,000 AA/Aa2 104.701 that ended on March 31 on the back of high oil output and price, an Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 128.375 economic report said on Sunday. The oil-rich Gulf state posted a historical Sukuk Dubai DOF Sukuk Ltd 2-May-17 600 -/-/104.943 Bond Kingdom of Bahrain 5-Jul-20 1,500 BBB/100.063 budget surplus of 13.2 billion Kuwaiti dinars (47 billion US dollars) for the Bond Lebanese Republic 12-Oct-17 600 -/96.750 13th consecutive fiscal year, the Al-Shall Economic Consultants said in a Bond Republic of Turkey 14-Jul-17 2,250 BB/Ba1 120.350 report citing official figures. Higher Yields Draw Saudi Banks to T-Bills, Loans- Saudi Arabia’s banks bought the most treasury bills in seven months in June and boosted lending to companies participating in the nation’s expansion to take advantage of the highest returns in at least 14 months. Treasury-bill holdings rose 4.5 percent month on month in June to 135 billion riyals ($36 billion), the highest since November, according to central bank data. Saudi banks bought more securities as the regulator raised the yield on one-year bills by three basis points, or 0.03 percentage point, since May. Majid Al Futtaim Rallies on Dubai Tourism Bets- The Islamic bonds of Majid Al Futtaim Holding LLC, a Dubai-based family-run operator of malls and hotels, rose to the highest since their debut, buoyed by a rebound in Dubai’s tourism and real-estate markets. The yield on the 5.85 percent sukuk due February 2017 fell 170 basis points since they were sold on Jan. 31 to 4.15 percent on Aug. 3. Average yields on sukuk from the six-nation Gulf Cooperation Council dropped 106 basis points in the period to 3.23 percent, the HSBC/Nasdaq Dubai GCC US Dollar Sukuk Index shows.

Bond Arab Republic of Egypt Bond Kindgom of Jordan Bond Republic of Iraq Corporates Bond Tamweel Funding Ltd Bond Qatar Telecom Sukuk Aldar Properties Bond Rasgas LNG 3 Sukuk DP World Ltd Bond Kuwait Projects Co. Bond Burgan Bank Bond Saudi Electricity Co.

29-Apr-20 12-Nov-15 15-Jan-28

1,000 750 2,700

-/Ba2/BB -/-

96.250 97.375 87.583

105.320 129.375 105.544 100.938 99.125 120.840 99.125 98.490 88.625

18-Jan-17 10-Jun-19 27-May-14 30-Sep-20 2-Jul-17 15-Jul-20 29-Sep-20 3-Apr-17

300 600 1,500 1,400 1,500 500 400 500

Baa1/A/A2 BB-/B1 A/Aa3 BBB-/Baa3 BBB-/Baa3 BBB/Baa1 A1/AA-

104.493 128.412 109.369 112.081 109.023 114.319 108.195 102.742

105.286 129.549 109.981 113.190 109.586 115.482 109.550 103.319

2.010% 2.156% 3.749% 5.4885 5.732% 3.027% 5.732% 4.751% 7.424%

1.875% 2.018% 3.614% 5.347% 5.193% 2.931% 5.193% 4.375% 7.276%

4.038% 3.213% 5.227% 2.420% 4.192% 6.992% 6.557% 2.043%

3.848% 3.053% 4.889% 2.190% 4.071% 6.815% 6.352% 1.915%

MENA Sovereign Ratings Moody’s S&P Fitch Abu Aa2 AA AA Dhabi Bahrain Baa1 BBB

BBB

Kuwait

Aa2 AA

AA

Oman

A1

NR

Qatar

Aa2 AA

NR

KSA

Aa3 AA-

AA-

UAE

Aa2 NR

NR

Egypt

B2

B

B+

Lebanon B1

B

B

Turkey

BB

BB+

Tunisia Baa3 BB

BBB-

Ba1

A

Morocco Ba1 BBB- BBBJordan

Ba2

BB

NR

HSBC/NASDAQ Dubai Middle East US Dollar Sukuk /Bonds US Index

China

Aa3 AA-

A+

Sukuk

UK

Aaa AAA

AAA

US

Aaa AA+

AAA

3-Aug-12 31-Dec-11

Total Return 159.87 148.84

Duration Yield 5.13 4.99

3.99 5.07

Spread 266.91 326.79

3-Month 6/08/12 31/12/11 0.9500 0.5188 0.9375 0.5625 1.2400 0.8500 1.2071 0.4300 1.3575 0.9750 0.4393 0.2953 0.3750 0.9643 4.9440 3.8410 8.0258 11.2750

UAE Banks assets recover in June- The combined assets of UAE banks rebounded by around 0.4 per cent in June after losing nearly Dh17 billion in the previous month while deposits also recovered. Domestic credit also recovered but growth remains slow as banks appear to be maintaining a conservative lending policy they have adopted since the onset of the 2008 global fiscal distress and ensuing regional debt default problems. The figures by the Central Bank showed the collective assets of the UAE's 23 national banks and 28 foreign units increased to about Dh1,732.7 billion at U.S. Treasuries (3 August 2012) the end of June from Dh1,725 billion at the end of May Current Yield 1-Day ∆ 3-Month 2-Year 3-Year 5-Year 7-Year 10-Year 30-Year

(%) 0.08 0.24 0.32 0.65 1.05 1.55 2.64

Clean Coupon Total Market Cap Price 6.56 103.55 5.43 1468.61 6.80 99.35 5.81 1157.44

Life

USD 5-Year CDS

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

Citigroup Sees Reversal in World’s Best Bonds- Turkey’s bonds, the best performers in emerging markets this year, are set to fall as the government boosts sales to cover rising redemptions and lower yields crimp investor appetite, according to Citigroup Inc. Turkey must repay 30 billion liras ($17 billion) of debt in the first quarter of 2013, at least 50 percent more than in the third and fourth quarters of this year.

Ask Price Bid Yield Ask Yield

(%) 0.000 -0.002 -0.005 -0.011 -0.012 -0.012 -0.007

6/08/12 1.0037 1.1875 1.5700 1.4142 1.5250 0.7236 0.6590 5.3220 8.4817

6-Month 1-Year 31/12/11 6/08/12 31/12/11 0.7800 1.1362 1.0400 0.8125 1.4375 1.3125 1.2583 1.9300 1.9583 1.1000 1.7428 2.1500 1.5200 1.7400 1.9725 0.5810 1.0462 1.1281 1.2921 0.9300 1.9134 4.2380 5.3220 5.2000 Currencies 11.316 8.5842 11.3743 Currency USD 1-Day ∆ 0.28191-Day 0.0003∆ 1 Year (%) CurrencyKWD USD SAR 3.7502 (0.0001) -3.180% KWD 0.2817 0.0004 SAR 3.7503 0.0000 0.010% BHD 0.3770 0.0000 BHD 0.3770 (0.0001) -0.003% QAR 3.6413 0.0004 QAR 3.6409 (0.0002) 0.011% OMR (0.0003) 0.062% OMR0.3846 0.3850 0.0003 AED 3.6730 0.0001 0.100% AED 3.6730 0.0001 EGP 6.0825 (0.0052) -2.152% EUR/USD (0.0027) JOD 0.7095 1.2265 (0.0002) -0.155% EUR/USD 1.2380 0.0021 -12.653%

Abu Dhabi Dubai

YTD Change

107.745

-15.4%

319.188

-26.6%

Bahrain 288.895

-24.6%

Qatar

107.610

-15.5%

Saudi

103.610

-19.4%

Egypt

575.710

-10.0%

Lebanon 500.000

5.9%

Turkey Iran

174.4700 -40.1% 42.000

9.0%

Morocco 268.585

-0.4%

China

109.570

-25.5%

France

152.005

-30.8%

Germany 85.355

-40.4%

Japan

55.290

-43.2%

UK

45.500

-7.0%

US

47.500

-3.0%

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.


MENA Daily Fixed Income Update  

MENA Daily Fixed Income Update

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