Kuwait Financial Centre “Markaz” MENA Daily Fixed Income Report –27 November 2012 News Update GCC Bond & Sukuk: Best and worst Performers (26 November 2012) Kuwait Finance House Board Approves 20% Capital IncreaseDaily Best daily Performers Worst daily Performers Capital increase is part of restructuring and expansion plans, according to a change 1.17% RASGAS 5.838 09/30/27 bank statement to the Kuwait Stock Exchange. Kuwait Finance House total NBADUH 0 02/28/18 DPWDU 6.85 07/02/37 0.41% GULINT 0 09/30/15 equity at 2.2b dinars at end of 3Q. Saudi Hollandi Bank Raises 1.4 Billion Riyals From Sukuk SaleBank concludes Tier II sukuk private placement transaction to support capital base. Sukuk has 7 yr tenure; bank has right to call sukuk at end of 5th yr. Sukuk carries periodic profit of 6 months Sibor + 1.15%. ABN Amro holds 40% of Saudi Hollandi Bank. X-S&P Assigns 'AA' Rtgs To Proposed IPIC Euro And USD BondsStandard & Poor's Ratings Services said it has assigned its 'AA' long-term debt rating to two proposed senior unsecured Eurobonds and one proposed U.S.-dollar bond to be issued by Abu Dhabi government-owned International Petroleum Investment Company GMTN Ltd. (IPIC GMTN). Qatar Telecom Yield Jumps as Buying Spree Cuts Cash- Qatar Telecom QSC’s bond yields are set for the steepest monthly advance in almost two years as acquisitions by the Middle East’s second-largest phone company by revenue erode its cash holdings. The yield on state-run Qatar Telecom’s 2016 bonds, which are rated at Moody’s Investors Service’s sixth-highest investment grade of A2, has risen 20 basis points in November and is headed for the biggest gain since February 2011. That contrasts with a one basis-point decline for HSBC/Nasdaq Dubai’s Middle East Investment Grade U.S. Dollar Sukuk/Bond Index.
TAQAUH 6 1/2 10/27/36 INTPET 6 7/8 11/01/41 JAFZSK 7 06/19/19
0.32% 0.30% 0.29% Monthly change 20.43% 3.71% 2.38% 2.34% 1.64% YTD change 40.03% 35.95% 34.32% 32.98% 32.69%
Best monthly Performers
DANAGS 7 1/2 10/31/12 NBADUH 4.365 08/09/32 NBADUH 4.8 09/15/36 NBADUH 5.01 05/22/42 BHRAIN 5 1/2 03/31/20 Best YTD Performers NBADUH 4.8 09/15/36 INTPET 6 7/8 11/01/41 MBPSFN 11 1/4 11/15/15 NAKHL 10 08/25/16 TAQAUH 6 1/2 10/27/36
ABCORP 0 04/04/17 ARNBAB 0 10/31/16 BBK 4 1/2 10/28/15 Worst monthly Performers
GOBLT 0 05/15/12 BHRAIN 6.273 11/22/18 QTELQD 3 3/8 10/14/16 ALDAR 10 3/4 05/27/14 DOLNRG 5.888 06/15/19 Worst YTD Performers DAEAVI 11 1/4 08/01/15 TAQAUH 6.6 08/01/13 DUGB 4 02/22/14 RAKS 8 07/22/14 ADGB 5 1/2 04/08/14
Daily change -0.43% -0.43% -0.22% -0.18% -0.12% Monthly change -17.27% -0.88% -0.81% -0.75% -0.67% YTD change -2.37% -2.20% -2.20% -2.14% -2.02%
Source: Bloomberg, Markaz Analysis
HSBC/NASDAQ Dubai Middle East US Dollar Sukuk /Bond Index Sukuk 23-Nov-12 31-Dec-11
Total Return 165.329 148.84
Duration Yield 5.006 4.99
First Foreign Bank Junior Debt Sold in Malaysia- National Bank of Abu Dhabi PJSC completed Malaysia’s first sale of sukuk by a foreign lender that rank below other securities in terms of claims on assets, taking advantage of the Asian nation’s more-advanced rules. The governmentowned entity sold 500 million ringgit ($164 million) of 15-year subordinated Islamic bonds at 4.75 percent last week, according to a Nov. 23 statement. That’s less than the 4.9 percent it paid Malaysian investors in December 2010 for sukuk due in 2020 that has a higher priority in the event of liquidation, and 183 basis points more than average rates on global Shariah-compliant debt in the Gulf Cooperation Council.
Interbank Rates (%)
GCC Utilization of Bond Market is Growing- There is US$233bn in debt securities issued in the GCC in circulation, equivalent to 17% of the region’s GDP. This is a relatively low level compared with advanced economies where government bonds alone often amount to over 100% of GDP. According to analysis by QNB Group, this debt includes US$17bn in central bank T-bills (short-term debt instruments that are generally used to manage domestic liquidity) and US$216bn in longer-term bonds and sukuks (the Sharia-compliant equivalent).
U.S. Treasuries 27 November 2012
SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR JDIBOR TRLIBOR
3-Month 2-Year 3-Year 5-Year 7-Year 10-Year 30-Year
3-Month 27/11/12 31/12/11 0.9738 0.5188 0.8125 0.5625 0.6500 0.8500 1.2000 0.4300 1.3000 0.9750 0.3115 0.2953 0.1890 0.9643 5.0690 3.8410 5.7400 11.2750
Current Yield (%) 0.10 0.27 0.36 0.67 1.09 1.67 2.81
3.59 5.07
Spread 230.756 326.79
Clean Coupon Total Market Cap Price 6.301 105.543 5.36 1523.900 6.80 99.35 5.81 1157.44
Life
6-Month 27/11/12 31/12/11 1.0113 0.7800 1.0625 0.8125 1.5167 1.2583 1.3714 1.1000 1.4713 1.5200 0.5270 0.5810 0.3490 1.2921 5.5030 4.2380 6.4048 11.3160
1-Day ∆ (%) 0.013 0.004 -0.004 -0.035 -0.055 -0.086 -0.164
Currency KWD SAR BHD QAR OMR AED EGP JOD EUR/USD
USD 0.2819 3.7504 0.3770 3.6413 0.3850 3.6731 6.1054 0.7102 1.2984
1-Year 27/11/12 31/12/11 1.1283 1.0400 1.3125 1.3125 1.8900 1.9583 1.7071 2.1500 1.6250 1.9725 0.8600 1.1281 0.5800 1.9134 6.0500 5.2000 6.7101 11.3743 1-Day ∆ (0.0001) (0.0001) (0.0000) 0.0000 0.0004 0.0001 0.0139 0.0000 0.0011
1 Year (%) -1.051% 0.000% 0.003% 0.011% 0.003% -0.003% -1.178% 0.085% 0.170%
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
China
Aa3 AA-
A+
UK
Aaa AAA
AAA
US
Aaa AA+
AAA
USD 5-Year YTD CDS Change Abu 89.300 -29.9% Dhabi Dubai 243.689 -43.6% Bahrain 199.995 -47.8% Qatar
90.745
Saudi
79.500 -38.1%
Egypt
411.230 -39.2%
Lebanon 467.336
-28.5%
9.2%
Turkey
141.760 -50.5%
Iran
35.122
-12.9%
Morocco 245.000 -8.9% China
71.793
-58.5%
France
85.790
-61.6%
Germany 31.541
-70.2%
Japan
71.093
-49.5%
UK
30.345
-67.3%
US
47.500
-3.0%
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A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.