MENA Daily Fixed Income Report - 1 April

Transcription

1. MENA Daily Fixed Income Report –1 April 2021 Kuwait Financial Centre “Markaz” News Updates Ooredoo Returns Successfully to Debt Capital Markets with $1 Billion Bond Issuance – Ooredoo Q.P.S.C. announced Wednesday the successful pricing of its $1 billion issuance of senior unsecured Reg S/Rule 144A notes (The Notes). The Notes are to be issued by its wholly owned subsidiary Ooredoo International Finance Limited under the existing $5 billion Global Medium Term Notes programme on the Irish Stock Exchange. The Notes will be unconditionally and irrevocably guaranteed by Ooredoo, the Group said in a statement. The Notes will mature on April, 8 2031 and will have a coupon of 2.625% per year. The transaction was priced at a spread to the 10-year US Treasuries of 103.4 basis points, the statement added. The issuance was more than 3.4 times over-subscribed at its peak. The Notes are rated A2 by Moodys, A- by S&P and A- by Fitch. The issuance was arranged and offered through a syndicate of Joint Lead Managers and Bookrunners comprising of Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd., Mizuho International plc, QNB Capital LLC and Standard Chartered Bank. (Source: OAPNA) Bahrain's NOGA sells $600mln in 8-year Islamic bonds – Bahrain's National Oil and Gas Holding Company (NOGA Holding) launched eightyear sukuk, or Islamic bonds, on Wednesday to raise $600 million at 5.25%, a document from one of the banks on the deal showed. NOGA, wholly owned by the Bahraini government, had given initial price guidance of 5.75%-5.875% for the sukuk. Earlier in the day, the company was expected to issue $500 million but upped the size and brought the pricing down after receiving more than $2.9 billion in demand. A source close to the deal said launching 50-62.5 bps tighter than initial guidance "is unheard of in current markets" and that other emerging markets deals generally move around 25 bps. (Source: Zawya) X-S&PGR Publishes Q2 Economic Outlook On Emerging Markets – Improved global growth prospects, better-than-expected performance in Q4, and in some cases, more supportive fiscal stance than S&P Global Ratings previously assumed have prompted it to lift its 2021 growth expectations for emerging market (EM) economies, according to its recently published report titled "Economic Outlook Emerging Markets Q2 2021: Tailwinds From Stronger Global Growth, But Several Challenges On The Radar". Near-term outlook for domestic activity across EMs remains soft, and tied to the pandemic's trajectory and related restrictions, which is mitigated by a resilient foreign trade. We expect growth in most EMs to accelerate as the year progresses, vaccinations gather pace, and global demand strengthens. The adjustments to the recent increase in long-term U.S. treasury yields have so far been generally orderly for most EMs, given that it has been accompanied by higher global growth expectations, a dynamic that's beneficial for EMs. Significant tightening of financial conditions in EMs amid the widening divergence between the U.S. rebound and the rest of the world is a downside risk. (Source Bloomberg) GCC Sovereign Yields Sovereigns Maturity Yield % Abu Dhabi 2025 1.03 Price ∆ (YTD %) -1.36 Abu Dhabi 2030 2.18 Abu Dhabi 2050 Bahrain Bahrain Bahrain Dubai Sovereign Ratings Maturity Yield % KSA 2025 1.45 Price ∆ (YTD %) -1.44 Kuwait A1 AA- -4.89 KSA 2030 2.57 -4.61 KSA A1 A-u A 3.37 -10.94 KSA 2050 3.91 -10.27 UAE Aa2 NR AA- 2026 3.45 -1.27 Oman 2025 3.52 2.03 AA AA 5.68 -6.43 Oman 2029 5.33 0.50 Abu Dhabi Aa2 2030 2047 7.07 -11.11 Oman 2048 7.06 -3.90 Qatar Aa3 AA- AA- -1.47 Bahrain B2 B+ B+ Ba3 B+ BB- 2029 2.72 -1.85 Sovereigns Qatar 2025 1.11 Moody’s S&P Fitch AA Kuwait 2022 0.18 -0.66 Qatar 2030 2.24 -5.05 Oman Kuwait 2027 1.57 -3.08 Qatar 2050 3.47 -10.91 Egypt B2 B B+ Lebanon C SD RD Bonds and Sukuk Indices Index Name Bloomberg GCC FI Index Yield % Duration (yrs) 1D ∆ (%) YTD ∆ (%) Jordan B1 B+ BB- 2.81 8.08 0.05 -2.99 Turkey B2 B+u BB- B3 NR B S&P MENA Bond and Sukuk Index 2.38 NA 0.03 -3.52 Tunisia Bloomberg Emerging Markets USD Index 4.01 6.80 0.08 -3.48 Morocco Ba1 BBB- BB+ -4.46 US Aaa AA+u AAA UK Aa3 AAu AA- China A1 A+ Bloomberg Global Aggregate Index 1.16 7.42 0.11 Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR 1/4/2021 1.5000 0.7963 1.2667 0.9801 0.3957 -0.5400 0.2016 3 Months 31/12/2020 1.4375 0.8175 2.2500 1.1206 0.5125 -0.5450 0.2384 USD Swap Rates Yield % 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year 0.2131 0.2911 1.0504 1.4350 1.7645 2.1765 6 Months 31/12/2020 1.6875 0.8700 2.5333 1.1960 0.4908 -0.5260 0.2576 Currencies 1D ∆ (bps) -0.31 -0.04 -0.69 -1.19 -1.72 -2.25 YTD ∆ (%) 10.7 47.2 144.3 119.2 90.7 55.2 USD KWD SAR BHD QAR OMR AED US Treasuries 2-Year 5-Year 10-Year 30-Year 1/4/2021 1.6875 0.8438 1.3917 1.1023 0.6014 -0.5190 0.2068 0.3022 3.7504 0.3771 3.6421 0.3850 3.6731 Commodities 1D ∆ (bps) -0.0827 0.0000 -0.0053 -0.0082 0.0000 0.0000 YTD ∆ (%) 0.35 0.04 -0.01 -0.01 0.00 0.00 UK Guilts Yield % 0.16 0.94 1.73 2.39 1D ∆ (%) 0.01 0.02 0.16 0.51 Yield % 0.09 0.39 0.84 1.39 12 Months 1/4/2021 31/12/2020 2.0000 1.9375 0.9163 0.9413 1.6417 2.6833 1.2463 1.3636 0.6010 0.6538 -0.4940 -0.4990 0.2866 0.3419 USD Gold Silver Copper Nat. Gas Aluminum Crude Oil 1,711.60 24.29 396.05 2.60 2,194.25 63.07 YTD ∆ (%) -10.05 -8.25 12.39 1.60 10.69 22.09 German Bunds 1D ∆ (%) -0.05 -0.14 -0.24 -0.80 Yield % -0.66 -0.70 -0.41 0.25 1D ∆ (%) 0.00 0.00 0.00 0.00 A+ USD 5Yr CDS 1-Apr 2021 31-Dec 2020 Kuwait 47.11 40.69 KSA 68.68 63.77 Abu Dhabi 48.30 36.03 Dubai 98.62 104.06 Qatar 48.29 36.70 Bahrain 192.87 233.58 Oman 279.83 353.60 Iraq 557.77 542.74 Egypt 318.76 330.47 Morocco 95.21 102.56 Turkey 469.18 299.47 US 9.24 11.52 UK 11.30 15.13 China 33.33 26.70 Japan 15.65 14.74 Germany 9.13 9.09 France 16.24 14.42 This report has been prepared and issued by Kuwait Financial Centre K.P.S.C. (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 can not be published. A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.