MENA Daily Fixed Income Report - 18 November

Transcription

1. MENA Daily Fixed Income Report Kuwait Financial Centre “Markaz” News Update – 18 November 2019 Boubyan Bank obtains CBK final approval to Issue Sukuk – Kuwait’s Boubyan Bank has obtained the final approval from the Central Bank of Kuwait for its Sukuk-issuance program of up to USD 1 billion or the equivalent thereof in other currencies, and for offering the first issuance thereof which shall not exceed USD 500 million or the equivalent of the same in other currencies. The issuance is expected to have a positive impact on the liquidity position and on diversifying the sources of long-term funding while enhancing the regulatory ratios associated with CBK’s instructions. Dubai Islamic Bank successfully closes landmark USD 750 – Dubai Islamic Bank PJSC (“DIB”), rated A3 by Moody's and A by Fitch (both stable), successfully closed a USD 750 million 5-year Sukuk with a profit rate of 2.950% per annum, which is equivalent to 140bps over the 5-year Mid Swap Rate. The transaction is DIB’s second foray into the international capital markets in 2019, the first being a USD 750mn Additional Tier 1 Sukuk priced earlier this year. The Sukuk’s profit rate of 2.95% is the tightest achieved by an FI Sukuk in 2019. Advanced Petrochemical fully redeems SAR 1 bln sukuk – Advanced Petrochemical Company has fully redeemed SAR 1 billion sukuk on November 17, 2019, the company said in a bourse statement. The sukuk have a par value at redemption of SAR 1 million, the statement added. The instruments were issued on November 17, 2014 and the last day of trading in the market was November 17, 2019. The financial impact of this transaction will appear in the results of Q4 2019, the statement added. UAE Cabinet approves federal law concerning insolvency of natural persons – The UAE Cabinet has approved a federal law to regulate cases of insolvency of natural persons, aimed at enhancing the competitiveness of the UAE by ensuring the ease of doing business, creating favourable conditions for individuals facing financial difficulties and protecting those who are unable to pay their debts from going bankrupt. The new law is part of the government's efforts to ensure convenience for citizens and residents, and respond to their needs. The law will support individuals who are facing existing or anticipated financial difficulties, rendering them unable to settle their debts. The law will help them reschedule their debts and provide them with the opportunity to be granted new concessional loans. Saudi Aramco sets the IPO price range between 30 and 32 riyals per share – Saudi Aramco on Sunday announced the offer price range for its Initial Public Offering (IPO), as well as the commencement of the institutional book-building period and the retail offering period, Saudi state news agency SPA reported. Individual investors will subscribe based on a price of SAR 32, which is the top end of the price range. The base offer size will be 1.5% of the company’s outstanding shares. GCC Sovereign Yields (18 November 2019) Maturity Yield % Abu Dhabi 2027 2.43 Price ∆ (YTD %) 9.12 Maturity Yield % KSA 2025 2.53 Price ∆ (YTD %) 7.85 Abu Dhabi 2047 3.34 18.21 KSA 2029 2.97 11.36 Bahrain 2024 3.69 7.78 KSA 2049 3.93 22.07 Bahrain 2029 4.83 16.48 Oman 2025 4.36 12.76 Bahrain 2047 6.11 21.81 Oman 2029 5.78 1.32 Dubai 2023 2.55 3.91 Oman 2048 7.07 15.61 Sovereigns Dubai 2029 3.21 Sovereigns 9.06 Qatar 2024 2.22 Sovereign Ratings Moody’s S&P Abu Aa2 AA Dhabi Bahrain B2 B+ AA AA Oman Ba1 BB BB+ Qatar Aa3 AA- AA- 4.44 KSA A1 A- A Aa2 NR NR B2 B 2022 2.01 3.16 Qatar 2028 2.59 9.24 Kuwait 2027 2.38 7.44 Qatar 2049 3.58 21.77 Egypt Source: Bloomberg Bonds and Sukuk Indices (18 November 2019) 1D ∆ (%) -0.01 Duration (yrs) 7.33 YTD ∆ (%) 12.97 S&P MENA Bond and Sukuk Index 3.04 NA -0.02 12.40 Bloomberg Emerging Markets USD Index 5.01 6.28 -0.02 11.14 Bloomberg Global Aggregate Index 1.43 7.27 0.10 6.07 Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR 3 Months 18/11/2019 31/12/2018 2.7500 2.3125 2.2286 2.9750 2.4000 3.5500 2.3000 2.9056 2.1191 2.8375 -0.4040 -0.3090 1.9026 2.8076 6 Months 18/11/2019 31/12/2018 2.9375 2.5625 2.2500 3.1150 2.8367 4.0833 2.4000 3.0889 2.1810 3.1849 -0.3330 -0.2370 1.9185 2.8756 USD Swap Rates 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year Yield % 1.7351 1.6245 1.5993 1.6429 1.7295 1.9126 YTD ∆ (%) -37.1 -38.9 -37.8 -37.4 -36.1 -32.6 US Treasuries 2-Year 5-Year 10-Year 30-Year 12 Months 18/11/2019 31/12/2018 3.1875 2.8125 2.2957 3.3413 2.9167 4.7000 2.6833 3.3028 2.2501 3.5737 -0.2690 -0.1170 1.9610 3.0054 Currencies 1D ∆ (bps) -0.16 -0.71 -0.79 -0.71 -0.69 -0.19 KWD SAR BHD QAR OMR AED USD 0.3042 3.7503 0.3771 3.6650 0.3850 3.6729 UK Guilts Yield % 1.60 1.64 1.82 2.30 1D ∆ (%) 0.01 0.04 0.07 0.09 Yield % 0.54 0.51 0.73 1.26 1D ∆ (bps) 0.0099 0.0000 0.0000 -0.0109 0.0026 0.0000 YTD ∆ (%) -0.06 0.03 -0.03 -0.24 0.01 0.00 German Bunds 1D ∆ (%) -0.05 -0.08 -0.19 -0.67 Yield % -0.41 -0.67 -0.48 0.16 1D ∆ (%) 0.00 -0.03 -0.14 -0.86 B+ Lebanon Caa2 CCC CCC Turkey B1 B+ BB- Tunisia B2 NR Morocco Ba1 BBB- B+ BBB- Jordan B1 B+ China A1 A+ A+ UK Aa2 AA AA USA BB- Aaa AA+ AAA USD YTD ∆ 5-Year CDS (%) Abu Dhabi 40.560 -36.60 Kuwait 39.900 Dubai 114.210 -6.54 Bahrain 201.380 -27.42 Qatar 40.800 -48.09 KSA 64.370 -36.71 Egypt 294.520 -21.01 Lebanon 1846.140 147.12 Turkey 306.649 -14.68 Iraq 338.030 -24.09 Morocco 84.950 -14.18 China 37.588 -43.14 France 17.960 -49.53 Germany 7.700 -36.04 Japan 21.156 -10.02 UK 28.06 -23.32 US 12.42 -31.31 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. BB- Aa2 Kuwait Yield % 3.30 AA Kuwait UAE Index Name Bloomberg GCC FI Index Fitch -35.15