MENA Daily Fixed Income Report - 2 December

Transcription

1. MENA Daily Fixed Income Report – 2 December 2020 Kuwait Financial Centre “Markaz” News Updates Japan says reached oil storage deal with Kuwait – Japan said on Tuesday it has reached a joint oil storage deal with state-run Kuwait Petroleum Corp (KPC) to lend it 3.14 million barrels (500,000 kilolitres) of capacity for free. Under the deal, KPC can use storage tanks at refiner Eneos’ Kiire base in southern Japan of Kagoshima as an export base for eastern Asia. In return, Japan gets a priority claim on the stockpiles in case of emergency. The volume is equivalent to 1.5 days of its consumption. It is Japan’s third such agreement, following UAE’s Abu Dhabi National Oil Company (ADNOC) and Saudi Arabia’s Saudi Aramco, and is aimed at reinforcing its energy security, an official at the Japan’s Economy, Trade and Industry Ministry (METI) said. The latest deal will boost Japan’s leased oil storage capacity to a total of 19.5 million barrels (3.1 million kl). The supply from KPC can be also used in other Asian countries, mainly ASEAN nations, in case of emergency, the official said. In March, Tokyo mapped out a new international resource strategy under which it aims to expand oil stockpiling scheme which benefits Japan, other Asian countries and oil suppliers. Kuwait was Japan’s fourth-largest oil supplier in 2019 after Saudi Arabia, the UAE and Qatar, providing 8.5% of Japan’s oil import, the ministry’s official said. (Source: Bloomberg) Turkey Wealth Fund to Retry Bond Sale as It Plans IPO of Assets – Turkey’s sovereign wealth fund will retry a Eurobond issuance next year after its debut was shelved two months ago due to weak investor demand, and is also considering selling shares in some of its assets. The institution is weighing an initial public offering of stock-exchange operator Borsa Istanbul AS within the next two years, Chief Executive Officer Zafer Sonmez said in an interview with BloombergHT TV. The fund on Monday sold a 10% stake in the bourse to Qatar Investment Authority for $200 million. The fund wants to become a regular issuer in international debt markets with Eurobond sales every “18 to 24 months,” he said. While it is slightly more expensive for wealth funds to borrow internationally compared with sovereign debt sales, the fund can also rely on dividends from the companies it owns and proceeds from asset sales to fund its operations. (Source: Bloomberg) GCC Sovereign Yields Sovereigns (Source: Bloomberg) Sovereign Ratings Price ∆ (YTD %) 5.19 Yield % Abu Dhabi 2025 0.83 Abu Dhabi 2030 1.55 Abu Dhabi 2050 2.67 Bahrain 2026 3.47 Bahrain 2030 4.98 Bahrain 2047 6.32 Dubai 2029 2.62 KSA 2025 1.26 Price ∆ (YTD %) 6.43 9.79 KSA 2030 2.08 10.37 KSA A1 A-u A 20.59 KSA 2050 3.23 10.37 UAE Aa2 NR NR -1.73 Oman 2025 4.65 -3.12 AA AA Oman 2029 5.90 -4.13 Abu Dhabi Aa2 15.10 Qatar Aa3 AA- AA- -6.19 Oman 2048 7.18 -6.19 2.46 Qatar 2025 0.92 6.56 Bahrain B2 B+ B+ Oman Ba3 B+ BB- Egypt B2 B B+ Lebanon C SD RD Jordan B1 B+ BB- Turkey B2 B+u BB- Tunisia B2 NR Sovereigns Maturity Yield % Kuwait 2022 0.30 1.29 Qatar 2030 1.71 11.88 Kuwait 2027 1.14 5.87 Qatar 2050 2.78 23.59 Bonds and Sukuk Indices Yield % Duration (yrs) 1D ∆ (%) YTD ∆ (%) Bloomberg GCC FI Index 2.57 8.08 0.05 7.88 S&P MENA Bond and Sukuk Index 2.07 NA -0.08 8.78 Bloomberg Emerging Markets USD Index 3.69 6.80 0.02 4.95 Bloomberg Global Aggregate Index 0.89 7.42 -0.11 7.63 Index Name Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR 3 Months 2/12/2020 31/12/2019 1.4375 2.7500 0.8313 2.2314 2.2500 2.6667 1.0569 2.2500 0.3323 2.2086 -0.5260 -0.3830 0.2276 1.9084 6 Months 2/12/2020 31/12/2019 1.6875 2.9375 0.8800 2.2557 2.5333 2.7000 1.1663 2.3500 0.6250 2.1914 -0.5080 -0.3240 0.2550 1.9121 USD Swap Rates 1-Year 2-Year 5-Year 7-Year 10-Year StanChart Leads MENA Debt Underwriting as Sales Climb – Standard 30-Year Chartered Bank led underwriting of debt in the Middle East and North Africa region so far this year as the value of deals rose 18%. Issuers sold $134.5 billion of bonds through November vs. $113.9 billion a year ago, according to data compiled by Bloomberg League Tables. Standard Chartered Bank captured 15% of the market followed by HSBC at 14.7%. Saudi Arabian Oil Co. was the biggest issuer in November, at $8 billion Maturity Yield % 0.2175 0.2369 0.4548 0.6579 0.9060 1.3417 Currencies 1D ∆ (bps) -0.13 -0.36 -1.00 -1.20 -1.45 -1.69 YTD ∆ (%) -87.7 -86.0 -73.7 -63.4 -52.2 -35.8 US Treasuries 2-Year 5-Year 10-Year 30-Year 12 Months 2/12/2020 31/12/2019 2.0000 3.1875 0.9488 2.3071 2.6833 2.8333 1.3148 2.5333 0.6000 2.2900 -0.4870 -0.2490 0.3303 1.9963 KWD SAR BHD QAR OMR AED USD 0.3047 3.7512 0.3771 3.6417 0.3850 3.6731 UK Guilts Yield % 0.16 0.41 0.91 1.65 1D ∆ (%) 0.02 0.06 0.16 0.41 Yield % -0.03 0.03 0.34 0.90 1D ∆ (bps) 0.1477 -0.0027 0.0053 -0.0082 0.0000 0.0000 YTD ∆ (%) -0.51 0.02 0.00 0.00 0.00 0.00 German Bunds 1D ∆ (%) -0.02 -0.12 -0.52 -1.37 Yield % -0.72 -0.74 -0.59 -0.12 1D ∆ (%) -0.02 -0.13 -0.39 -1.52 Moody’s S&P Kuwait A1 AA- Fitch AA B Morocco Ba1 BBB- BB+ US Aaa AA+u AAA UK Aa2 AAu AA- China A1 A+ A+ USD 5Yr CDS 2-Dec 2020 31-Dec 2019 Kuwait 40.19 36.700 KSA 66.23 56.915 Abu Dhabi 35.21 36.090 Dubai 107.49 91.005 Qatar 36.58 36.705 Bahrain 263.39 175.995 Oman 400.95 234.400 Iraq 576.71 383.680 Egypt 360.38 277.420 Morocco 98.27 91.435 Turkey 377.12 282.130 US 12.65 10.810 UK 17.00 16.210 China 28.67 31.205 Japan 14.89 21.042 Germany 9.49 7.080 France 15.90 16.130 Source: Bloomberg 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.