Kuwait Financial Centre “Markaz”

Kuwait Financial Centre “Markaz”
MENA Daily Fixed Income Report – 30 April 2014
News Update:
GCC Bonds &Sukuk: Best and worst Performers (30 April 2014)
Best daily Performers
Daily change
Emirates NBD Prices A$400 Million Bond at Govt Debt + 241.5
bps- The A$400 mn bond by Emirates NBD PJSC bears a coupon of 5.75%
and is set to mature in 2019. The Sale managers include ANZ, BNP Paribas,
Emirates NBD Capital and HSBC.
Fitch Upgrades 3 Qatari Banks to 'A' on Changed Support
Assessment; Affirms 4 Others- Fitch Ratings has upgraded Al Khalij
Commercial Bank (AKB), Qatar International Islamic Bank's (QIIB) and Ahli
Bank QSC's (ABQ) Long-term Issuer Default Ratings (IDR) to 'A' from 'A-'.
Fitch has also affirmed Commercial Bank of Qatar's (CBQ), Doha Bank's
(DB) and Qatar Islamic Bank's (QIB) Long-term IDRs at 'A'. Qatar National
Bank's (QNB) Long-term IDR has been affirmed at 'A+'. The Outlooks on
the Long-term IDRs are Stable. The upgrade of AKB's, QIIB's and ABQ's
IDRs is driven by a change in Fitch's view of the drivers of Qatari sovereign
support for domestic banks. Fitch expects that there is an extremely high
probability that all rated Qatari banks that require support would receive it,
irrespective of franchise and ownership, and have therefore equalised all
banks' SRFs and IDRs at 'A', except for the flagship bank, QNB.
Egypt secures $195 mln loan for power station upgrade- Egypt,
facing the risk of ever-worsening blackouts, approved on Tuesday a 55million-Kuwaiti dinar ($195.52 million) loan from the Kuwait-based Arab
Fund for Economic and Social Development to help finance an upgrade of a
power plant. Egypt needs at least $5 billion to invest in its dilapidated
electricity generation system, a government official told Reuters earlier this
month. The loan from the fund, which lends money for development
projects in the Middle East, is for a project at the al-Walidiya plant in the
southern city of Assiut, a cabinet statement said.
Lebanon says expects economy to grow to up to 2% this yearLebanon expects its economy to grow between 1.5 percent and 2 percent
in 2014, the finance minster said on Tuesday. Ali Hassan Khalil also told
reporters that the country’s debt stood at $64.9 billion, more than half of it
in local currency.
S&P MENA Bond Index
S&P MENA Sukuk Index
Bloomberg Global Developed Sovereign Bond Index
Bloomberg Global Investment Grade Corporate Bond Index
Bloomberg Global High Yield Corporate Bond Index
Bloomberg USD Emerging Market Composite Bond Index
Bloomberg US Treasury Bond Index
102.231
SAIBOR
KIBOR
BHIBOR
QATAR
AEIBOR
LIBOR
LIBOR
EURIBOR
JDIBOR
TRLIBOR
3 Month
30/04/14
31/12/13
0.9513
0.9563
1.1875
0.8750
0.8000
0.6500
1.1443
1.3163
0.7414
0.8129
0.2254
0.2461
0.2281
0.2461
0.3450
0.2870
5.1960
5.3530
10.7738
9.1191
Daily change
-1.79%
-1.54%
-0.91%
YTD change
-5.76%
-2.60%
-2.27%
Price
1-Day ∆
105.450
0.04%
105.880
0.04%
104.290
0.05%
113.009
-0.03%
125.646
0.01%
152.104
0.05%
138.534
0.17%
117.198
0.02%
Dow Jones Sukuk Index
Interbank Rates (%)
Sovereign Ratings
Worst daily Performers
ADCBUH 0 12/06/17
DANAGS 7 10/31/17
GMSEDU 12 11/29/49
Worst YTD Performers
DANAGS 7 10/31/17
ALDAR 10 3/4 05/27/14
ADCBUH 4 1/8 10/11/17
Dubai's Majid Al Futtaim prices $500 mln bond- Majid Al Futtaim
ADCBUH 4.7 01/18/33
0.26%
Holding LLC, the operator of Carrefour SA supermarkets in the Middle East,
ADCBUH 4.7 12/17/37
0.25%
raised $500 million from the sale of 10-year bonds in its first issue in six
ADCBUH 4 3/4 12/06/37
0.25%
months. The bonds from the Dubai-based company will be priced to yield
Best YTD Performers
YTD change
DPWDU 6.85 07/02/37
10.32%
195 basis points, or 1.95 percentage points, above the benchmark
DUGB 5 1/4 01/30/43
10.22%
midswap rate with the money used to refinance debt. Pricing was tightened
BBK 0 06/28/17
7.98%
from an initial guidance of around 212.5 basis points above the rate. High
Source: Bloomberg
demand for the offer - the order book exceeded $2 billion just before it
Bonds &Sukuk Indices (30 April 2014)
was closed, according to the leads - helped the company reduce the cost of Index Name
its borrowing.
S&P MENA Bond and Sukuk Index
6 Month
30/04/14
31/12/13
0.9975
0.9973
1.3750
1.1250
1.4250
1.5125
1.3371
1.4438
0.9500
1.0086
0.3230
0.3480
0.3279
0.3480
0.4440
0.3890
5.7240
5.9210
10.8180
9.3241
0.03%
YTD∆
3.53%
3.83%
2.62%
3.52%
3.70%
3.68%
3.92%
2.15%
Yield
2.91%
3.04%
2.50%
1.39%
2.49%
5.87%
5.16%
1.58%
1.77%
12 Month
30/04/14
31/12/13
1.0900
1.1013
1.5625
1.3125
1.7725
1.8125
1.5957
1.7425
1.1386
1.1843
0.5490
0.5831
0.5536
0.5831
0.6200
0.5560
6.1810
6.4110
11.0326
9.8889
U.S. Treasuries 30 April 2014
1-Month
3-Month
6-Month
1-Year
2-Year
3-Year
5-Year
7-Year
10-Year
30-Year
Current Yield
(%)
0.11
0.02
0.05
0.11
0.44
0.89
1.73
2.29
2.69
3.48
1-Day ∆
0.000
0.003
-0.003
0.000
0.004
-0.004
0.004
0.023
0.023
0.125
Cu
rre
nc
y
Currency
USD
1-Day ∆
1 Year (%)
KWD
SAR
BHD
QAR
OMR
AED
EGP
JOD
EUR/USD
0.2814
3.7505
0.3770
3.6413
0.3850
3.6730
7.0043
0.7100
1.3803
0.0001
0.0000
0.0000
0.0008
0.0000
0.0000
0.0025
0.0010
(0.0010)
0.373%
0.005%
-0.027%
0.017%
0.003%
-0.005%
-0.776%
-0.183%
0.429%
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
Caa1 B-
B-
Lebanon B1
A
B-
B
Turkey
Baa3 BB+ BBB-
Tunisia
Ba2
B
BB+
Morocco Ba1 BBB- BBBJordan
B1
BB-
NR
China
Aa3 AA-
A+
UK
Aa1 AAA
AA+
USA
Aaa AA+
AAA
USD 5-Year CDS
Abu
Dhabi
Dubai
53.000
YTD
Change
-8.2%
209.028
-4.6%
Bahrain 180.000
-27.1%
Qatar
63.000
2.5%
Saudi
54.000
-6.4%
Egypt
390.000
-39.0%
Lebanon 380.000
-7.0%
Turkey
204.380
-17.2%
Iran
48.000
13.7%
Morocco 201.770
-7.2%
China
91.000
11.9%
France
47.070
-14.0%
Germany 21.870
-17.1%
Japan
47.280
13.9%
UK
24.000
-13.0%
US
19.130
-38.8%
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A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.

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