MENA Daily Fixed Income Report - 29 December

Transcription

1. MENA Daily Fixed Income Report – 29 December 2020 Kuwait Financial Centre “Markaz” News Updates Capital Intelligence affirms National Industries' bond ratings; outlook negative – Capital Intelligence Rating has affirmed the ratings of KWD 25 million senior unsecured bond and KWD 30 million senior unsecured bond of National Industries Group Holding at 'BBB' and 'BBB-', respectively, with a negative outlook. The KWD 25 million unsecured bond will be matured in December 2021, while the KWD 30 million unsecured bond will be matured in February 2025, according to the company's disclosure to Boursa Kuwait and Dubai Financial Market (DFM) on Thursday. The ratings reflect the company's ability to make both interest payments and principal. The international rating agency has revised its outlook for both ratings from stable to negative due to the coronavirus (COVID-19) impact on the company's financial performance and flexibility. The ratings do not have an impact on the company's profits and loss account. It is noteworthy to mention that during the first nine months of 2020, the company incurred net losses of KWD 55.11 million, against KWD 35.81 million profits in the same period of 2019. (Source: Mubasher) Sharjah Ruler approves $9.14bln budget for 2021– H.H. Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has approved the general budget for the Emirate of Sharjah of AED 33.6 billion for the fiscal year 2021. According to Sharjah Finance Department (SFD), the budget has increased 12 per cent compared to the final 2020 budget with the aim to achieve the strategic vision of the emirate in economic and social development, enhancing financial sustainability, and stimulating the macroeconomic environment. Waleed Al Sayegh the Director General of the Finance Department said: "Salaries and wages account for 47 per cent of the total operating budget for 2021, while 43 percent of the general budget is allocated for developing and improving infrastructure in the emirate, with an increase of 40 percent over the 2020 budget". (Source: Zawya) Egypt’s FRA approves third Sukuk issuance in 2020 valued at EGP 600m – The Egyptian Financial Regulatory Authority (FRA) approved the third Sukuk issuance in 2020 with a value of EGP 600 million at a nominal value of EGP 100 apiece. The Ijara Sukuk, compliant with Islamic Sharia and non-convertible into shares, will be offered in a private placement for eligible financial institutions, entities, and individuals, the FRA’s Chairman, Mohamed Omran, said in a statement on Monday. He further revealed that the FRA seeks to develop the Sukuk market in Egypt next year, noting that EGP 10 billion in Sukuk issuances are expected in 2021. The total number of corporate Sukuk issuances in the first year of its launch reached three valued at EGP 5.1 billion. (Source: Mubasher) GCC Sovereign Yields Sovereigns Maturity Sovereign Ratings Price ∆ (YTD %) 5.37 Yield % Abu Dhabi 2025 0.75 Abu Dhabi 2030 1.57 Abu Dhabi 2050 2.73 Bahrain 2026 3.32 Bahrain 2030 4.79 Bahrain 2047 6.11 Dubai 2029 2.52 KSA 2025 1.15 Price ∆ (YTD %) 6.83 9.62 KSA 2030 2.00 10.99 KSA A1 A-u A 19.32 KSA 2050 3.24 10.02 UAE Aa2 NR AA- -1.26 Oman 2025 4.13 -1.33 AA AA Oman 2029 5.48 -1.53 Abu Dhabi Aa2 16.46 Qatar Aa3 AA- AA- -3.82 Oman 2048 6.81 -1.90 2.78 Qatar 2025 0.84 6.89 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 0.07 1.39 Qatar 2030 1.61 12.59 Kuwait 2027 1.06 6.08 Qatar 2050 2.79 23.30 Bonds and Sukuk Indices Yield % Duration (yrs) 1D ∆ (%) YTD ∆ (%) Bloomberg GCC FI Index 2.47 8.08 -0.04 8.64 S&P MENA Bond and Sukuk Index 2.01 NA 0.00 9.22 Bloomberg Emerging Markets USD Index 3.51 6.80 0.07 6.31 Bloomberg Global Aggregate Index 0.85 7.42 -0.02 8.63 Index Name Interbank Rates (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR 3 Months 29/12/2020 31/12/2019 1.4375 2.7500 0.8175 2.2314 2.2500 2.6667 1.0250 2.2500 0.4350 2.2086 -0.5420 -0.3830 0.2401 1.9084 6 Months 29/12/2020 31/12/2019 1.6875 2.9375 0.8700 2.2557 2.5333 2.7000 1.1125 2.3500 0.5160 2.1914 -0.5190 -0.3240 0.2666 1.9121 USD Swap Rates 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year Yield % 0.1965 0.2070 0.4501 0.6775 0.9533 1.4343 Currencies 1D ∆ (bps) -0.01 0.02 0.86 1.06 1.30 1.83 YTD ∆ (%) -88.9 -87.8 -74.0 -62.3 -49.7 -31.4 US Treasuries 2-Year 5-Year 10-Year 30-Year 12 Months 29/12/2020 31/12/2019 1.9375 3.1875 0.9413 2.3071 2.6833 2.8333 1.4250 2.5333 0.7568 2.2900 -0.4940 -0.2490 0.3404 1.9963 KWD SAR BHD QAR OMR AED USD 0.3037 3.7535 0.3771 3.6414 0.3850 3.6729 UK Guilts Yield % 0.13 0.38 0.94 1.68 1D ∆ (%) 0.01 -0.04 -0.13 -0.37 Yield % -0.17 -0.06 0.25 0.82 1D ∆ (bps) 0.0000 0.0000 0.0000 0.0055 0.0000 0.0000 YTD ∆ (%) -0.18 -0.04 0.00 0.01 -0.01 0.01 German Bunds 1D ∆ (%) -0.01 0.04 0.32 0.93 Yield % -0.79 -0.75 -0.62 -0.17 1D ∆ (%) 0.03 0.03 0.16 0.21 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 29-Dec 2020 31-Dec 2019 Kuwait 40.19 36.700 KSA 66.19 56.915 Abu Dhabi 36.35 36.090 Dubai 107.70 91.005 Qatar 37.21 36.705 Bahrain 236.61 175.995 Oman 354.58 234.400 Iraq 544.48 383.680 Egypt 332.99 277.420 Morocco 101.32 91.435 Turkey 311.40 282.130 US 11.56 10.810 UK 15.72 16.210 China 27.61 31.205 Japan 14.48 21.042 Germany 9.39 7.080 France 15.22 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.