MENA Daily Fixed Income Report - 20 April

Transcription

1. MENA Daily Fixed Income Report – 20 April 2021 Kuwait Financial Centre “Markaz” News Updates Equate Petrochemical mandates 144A / RegS US$ benchmark – Equate Petrochemical, fully owned subsidiary of Equate Petrochemical Company, mandates Citi, JPMorgan, MUFG and NBK Capital as global coordinators to arrange a series of fixed income investor calls across Asia, Europe and the United States commenced on April 19, 2021 BNP Paribas, HSBC, Mizuho, SMBC Nikko and Standard Chartered Bank together with the global coordinators are mandated as joint lead managers and joint bookrunners. A 144A / RegS US$ benchmark transaction, consisting of a 7-year conventional bond, will follow in the near future, subject to market conditions. The New Notes will be issued under the U.S.$4,000,000,000 global medium term note program established by Equate Petrochemical with Equate and TKOC acting as guarantors. (Source: Bloomberg) Abu Dhabi's TAQA gives initial guidance for dollar bonds – Abu Dhabi National Energy Company (TAQA), owned by Abu Dhabi stateowned holding company ADQ, has given its initial price guidance for dualtranche U.S. dollar-denominated bonds, a document showed on Tuesday. It gave initial guidance of around 110 basis points over U.S. Treasuries for a seven-year tranche and around 3.75% for a 30-year Formosa portion, the document showed. Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar. Citi and HSBC are global coordinators and Bank of China 601988.SS , First Abu Dhabi Bank, Mashreq, Mizuho and MUFG are also on the deal, which is expected to close later on Tuesday. (Source: Zawya) UAE central bank extends stimulus measures to mid-2022 to drive economic recovery – The United Arab Emirates central bank said on Tuesday it has extended until mid-2022 some stimulus measures introduced last year to mitigate the impact of the coronavirus crisis on the economy. The Targeted Economic Support Scheme (TESS) helps banks provide temporary relief to companies and individuals affected by the COVID-19 pandemic and facilitates additional lending capacity through the relief of existing capital and liquidity buffers. Banks will continue to be eligible to access a collateralized 50 billion dirham ($13.61 billion) zerocost liquidity facility until June 30 next year, the central bank (CBUAE) said in a statement on Tuesday. (Source: Al Arabiya) Egypt offers treasury bonds worth $1.05bln – The Central Bank of Egypt has issued treasury bonds worth EGP 16.5 billion ($1.05 billion), as part of efforts to help the Ministry of Finance clear the government budget deficit. In a statement, the bank said the value of the first offering amounted to EGP 5 billion for a period of three years, the second offering amounted to EGP 6 billion for a period of five years, and the third 10-year term offering was valued at EGP 5.5 billion. The government resorted to financing the budget deficit by offering bonds and treasury bills as debt instruments, and government banks are their largest buyers. Last Saturday, Minister of Finance Mohammed Maait announced that JP Morgan decided to include Egypt in its watchlist for government bonds for emerging markets. (Source: Zawya) GCC Sovereign Yields Sovereigns Maturity Yield % Abu Dhabi 2025 0.89 Price ∆ (YTD %) -0.91 Abu Dhabi 2030 2.01 Abu Dhabi 2050 Bahrain Bahrain Bahrain Dubai Sovereign Ratings Maturity Yield % KSA 2025 1.32 Price ∆ (YTD %) -1.06 Kuwait A1 AA- -3.68 KSA 2030 2.45 -3.61 KSA A1 A-u A 3.17 -7.53 KSA 2050 3.66 -6.61 UAE Aa2 NR AA- 2026 3.29 -0.85 Oman 2025 3.23 3.03 AA AA 5.32 -4.07 Oman 2029 4.90 3.25 Abu Dhabi Aa2 2030 2047 6.83 -8.63 Oman 2048 6.56 2.36 Qatar Aa3 AA- AA- -1.22 Bahrain B2 B+ B+ Ba3 B+ BB- 2029 2.59 -1.09 Sovereigns Qatar 2025 1.02 Moody’s S&P Fitch AA Kuwait 2022 0.20 -0.74 Qatar 2030 2.16 -4.47 Oman Kuwait 2027 1.54 -2.90 Qatar 2050 3.31 -8.37 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- 2.70 8.08 0.11 -1.38 Turkey B2 B+u BB- B3 NR B S&P MENA Bond and Sukuk Index 2.33 NA 0.17 -2.10 Tunisia Bloomberg Emerging Markets USD Index 3.88 6.80 0.13 -2.05 Morocco Ba1 BB+ BB+ -3.04 US Aaa AA+u AAA UK Aa3 AAu AA- China A1 A+ Bloomberg Global Aggregate Index 1.12 7.42 0.21 Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR 3 Months 20/4/2021 31/12/2020 1.5000 1.4375 0.7971 0.8175 1.2500 2.2500 1.1500 1.1206 0.3575 0.5125 -0.5380 -0.5450 0.1883 0.2384 USD Swap Rates Yield % 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year 0.2161 0.2793 0.9283 1.2858 1.6084 2.0316 Currencies 1D ∆ (bps) 0.00 0.35 1.81 2.07 2.15 2.21 YTD ∆ (%) 12.3 41.2 115.9 96.4 73.8 44.9 USD KWD SAR BHD QAR OMR AED US Treasuries 2-Year 5-Year 10-Year 30-Year 6 Months 20/4/2021 31/12/2020 1.6875 1.6875 0.8443 0.8700 1.3917 2.5333 1.2000 1.1960 0.5625 0.4908 -0.5110 -0.5260 0.2236 0.2576 0.3015 3.7507 0.3770 3.6421 0.3850 3.6731 Commodities 1D ∆ (bps) 0.1161 -0.0027 0.0000 -0.0110 0.0000 0.0000 YTD ∆ (%) 0.60 0.03 0.01 -0.01 0.00 0.00 UK Guilts Yield % 0.16 0.85 1.62 2.32 1D ∆ (%) 0.00 -0.07 -0.16 -0.37 Yield % 0.03 0.32 0.75 1.29 12 Months 20/4/2021 31/12/2020 2.0000 1.9375 0.9171 0.9413 1.6417 2.6833 1.3500 1.3636 0.5150 0.6538 -0.4780 -0.4990 0.2924 0.3419 USD Gold Silver Copper Nat. Gas Aluminum Crude Oil 1,768.70 25.96 429.00 2.75 2,316.65 67.73 YTD ∆ (%) -7.05 -1.94 21.65 7.79 16.63 31.11 German Bunds 1D ∆ (%) 0.00 0.00 0.00 0.00 Yield % -0.68 -0.67 -0.34 0.32 1D ∆ (%) 0.00 -0.02 -0.13 -0.41 A+ USD 5Yr CDS 20-Apr 2021 31-Dec 2020 Kuwait 46.69 40.69 KSA 62.69 63.77 Abu Dhabi 41.90 36.03 Dubai 89.75 104.06 Qatar 42.96 36.70 Bahrain 189.11 233.58 Oman 265.47 353.60 Iraq 491.92 542.74 Egypt 323.65 330.47 Morocco 88.52 102.56 Turkey 395.08 299.47 8.33 11.52 UK 9.70 15.13 China 34.97 26.70 Japan 15.49 14.74 Germany 9.74 9.09 France 20.00 14.42 US 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.