MENA Daily Fixed Income Report - 23 March

Transcription

1. MENA Daily Fixed Income Report – 23 March 2021 Kuwait Financial Centre “Markaz” News Updates Boubyan Bank Hires Advisers for USD RegS PNC6 Debt, Tender Offer – Boubyan Bank mandates Citi, NBK Capital and Standard Chartered Bank as joint global coordinators and, together with ADIB, Boubyan Capital, Emirates NBD Capital, Kamco Invest, KIB and KFH Capital as joint lead managers and joint bookrunners, to arrange a global investor conference call, along with a series of fixed income investor calls. An offering of fixed rate USD-denominated Regulation S PNC6 Basel III compliant Tier 1 Capital Certificates (the “New Capital Certificates”) will follow, subject to market conditions. Boubyan has announced an invitation to the holders of its outstanding RegS only $250 million Perpetual Tier 1 Capital Certificates issued by Boubyan Tier 1 Capital SPC Limited (the “Existing Capital Certificates”) to tender such Existing Capital Certificates for cash, subject to the successful settlement of the issue of the New Capital Certificates and other conditions described in the Tender Offer Memorandum dated March 22. Citi, Standard Chartered Bank and NBK Capital are appointed as joint dealer managers. The expiration deadline has been set at 4:00pm (London time) on March 29. Kuwait-based Boubyan Bank is rated A3 (stable outlook) /A- (stable outlook) /A+ (negative outlook) by Moody’s/S&P/Fitch. (Source: Bloomberg) Islamic Development Bank mandates banks for RegS $ Sustainability Sukuk – The Islamic Development Bank mandates Citi, HSBC, Goldman Sachs, Natixis, Societe Generale, Standard Chartered Bank and Warba Bank as joint lead managers and bookrunners to arrange fixed income investor calls starting March 22. A 5-year fixed rate Regulation S USD benchmark sustainability sukuk issuance under IsDB’s Trust Certificate Issuance Program and Sustainable Finance Framework will follow subject to market conditions. The Islamic Development Bank is rated Aaa/AAA/AAA by Moody’s/S&P/Fitch, each with stable outlook. (Source: GCC Sovereign Yields Sovereigns Maturity Yield % Abu Dhabi 2025 1.05 Price ∆ (YTD %) -1.42 Abu Dhabi 2030 2.19 Abu Dhabi 2050 Bahrain Bahrain Bahrain Dubai Yield % KSA 2025 1.42 Price ∆ (YTD %) -1.31 Kuwait A1 AA- -4.98 KSA 2030 2.54 -4.27 KSA A1 A-u A 3.34 -10.39 KSA 2050 3.88 -9.87 UAE Aa2 NR AA- 2026 3.38 -0.96 Oman 2025 3.46 2.29 AA AA 5.66 -6.27 Oman 2029 5.05 2.32 Abu Dhabi Aa2 2030 2047 6.95 -10.02 Oman 2048 6.89 -1.87 Qatar Aa3 AA- AA- -1.43 Bahrain B2 B+ B+ Ba3 B+ BB- 2029 2.73 -1.88 Qatar 2025 1.12 Moody’s S&P Fitch AA Kuwait 2022 0.08 -0.54 Qatar 2030 2.22 -4.90 Oman Kuwait 2027 1.59 -3.12 Qatar 2050 3.46 -10.71 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- 2.80 8.08 0.16 -2.88 Turkey B2 B+u BB- B3 NR B S&P MENA Bond and Sukuk Index 2.39 NA 0.08 -3.58 Tunisia Bloomberg Emerging Markets USD Index 3.94 6.80 -0.04 -3.15 Morocco Ba1 BBB- BB+ -3.73 US Aaa AA+u AAA UK Aa3 AAu AA- China A1 A+ Bloomberg Global Aggregate Index 1.14 7.42 0.25 Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR Bloomberg) Recep Tayyip Erdogan Sends Foreign Cash Rushing Out of Turkey – EURIBOR With President Recep Tayyip Erdogan’s sacking of his third central bank LIBOR governor in less than two years, Turkey’s dominant political leader of the past century has demonstrated yet again his determination to fight the conventions of modern economics. Investor flight drove the lira down as much as 15% on Monday, adding to losses that have kept inflation in double digits for the past 16 months. The yield on 10-year lira bonds rose by the most on record and stocks had their steepest drop since 2013. “This is a sudden stop in capital flows,” similar to the currency meltdown in 2018, said Robin Brooks, chief economist of the Institute of International Finance in Washington. “The result back then was a deep recession due to tighter financial conditions. It’ll be the same now.” Erdogan’s decision to fire Naci Agbal as central bank governor in the early morning hours Saturday followed a stunning 200 basis point interest-rate increase last week that drove the benchmark rate to 19%. In his four months in the office, Agbal had lifted the gauge by a cumulative 875 basis points – a direct contrast to the president’s unusual belief that higher borrowing costs fuel inflation. (Source: Bloomberg) Sovereign Ratings Maturity Sovereigns 3 Months 23/3/2021 31/12/2020 1.5000 1.4375 0.7963 0.8175 1.6583 2.2500 1.1117 1.1206 0.4246 0.5125 -0.5390 -0.5450 0.1969 0.2384 USD Swap Rates Yield % 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year 0.2089 0.2655 0.9533 1.3447 1.6861 2.1121 Currencies 1D ∆ (bps) 0.26 0.15 -1.05 -1.81 -2.64 -3.29 YTD ∆ (%) 8.5 34.2 121.7 105.4 82.2 50.6 USD KWD SAR BHD QAR OMR AED US Treasuries 2-Year 5-Year 10-Year 30-Year 6 Months 23/3/2021 31/12/2020 1.6875 1.6875 0.8438 0.8700 1.7583 2.5333 1.1889 1.1960 0.5414 0.4908 -0.5150 -0.5260 0.2024 0.2576 0.3020 3.7506 0.3771 3.6419 0.3850 3.6730 Commodities 1D ∆ (bps) 0.0000 0.0027 0.0000 0.0055 0.0000 0.0000 YTD ∆ (%) 0.43 0.03 -0.01 0.01 0.00 0.00 UK Guilts Yield % 0.15 0.85 1.67 2.36 1D ∆ (%) 0.01 0.08 0.27 0.76 Yield % 0.06 0.36 0.81 1.34 12 Months 23/3/2021 31/12/2020 1.9375 1.9375 0.9163 0.9413 2.1350 2.6833 1.3311 1.3636 0.7243 0.6538 -0.4830 -0.4990 0.2763 0.3419 USD Gold Silver Copper Nat. Gas Aluminum Crude Oil 1,737.10 25.66 408.85 2.56 2,256.50 64.00 YTD ∆ (%) -8.71 -3.09 16.02 0.87 13.84 23.60 German Bunds 1D ∆ (%) 0.03 0.09 0.26 0.55 Yield % -0.67 -0.72 -0.43 0.26 1D ∆ (%) 0.00 0.03 0.14 0.45 A+ USD 5Yr CDS 23-Mar 2021 31-Dec 2020 Kuwait 47.40 40.69 KSA 68.16 63.77 Abu Dhabi 48.05 36.03 Dubai 100.97 104.06 Qatar 48.07 36.70 Bahrain 206.15 233.58 Oman 283.87 353.60 Iraq 533.53 542.74 Egypt 293.98 330.47 Morocco 95.29 102.56 Turkey 430.51 299.47 US 10.05 11.52 UK 12.71 15.13 China 32.25 26.70 Japan 15.57 14.74 Germany 9.49 9.09 France 15.80 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.