MENA Daily Fixed Income Report - 29 November

Transcription

1. MENA Daily Fixed Income Report – 29 November 2020 Kuwait Financial Centre “Markaz” News Updates GCC Sovereign Yields Saudi Aramco announces completion of $8bln international bond Sovereigns Maturity Yield % issuance – The world’s largest oil producer Saudi Aramco confirmed on 2025 0.83 Wednesday it has just completed the issuance of $8 billion bonds that will Abu Dhabi Abu Dhabi 2030 1.56 help cover a multi-billion-dollar payout for its shareholders. The oil giant Abu Dhabi 2050 2.65 kicked off the international bond issuance on November 16, marking its Bahrain 2026 3.47 first time to return to the debt markets since last year. The issuance of Bahrain 2030 4.96 multi-year tranche bonds comes as the state-owned firm looks to raise Bahrain 2047 6.27 cash amid low oil prices and the COVID-19 pandemic. In a bourse filing to Dubai 2029 2.58 the Saudi Stock Exchange (Tadawul), Aramco said it has issued a total of Kuwait 2022 0.29 40,000 bonds/ sukuk, with a yield of 1.25 percent for bonds maturing in 2027 1.16 three years, 1.625 percent for bonds maturing in five years, 2.25 percent Kuwait for 10 years, 3.25 percent for 30 years and 3.5 percent for bonds maturing Bonds and Sukuk Indices in 50 years. It’s the first time the oil giant has offered a bond maturity of 50 Index Name years. (Source: Zawya) Saudi Arabia Broadens Central Bank’s Mandate to Promote Growth – The Saudi Central Bank updated its mandate to include supporting economic growth as one of its prime objectives, formally changing its fundamental operating principles for the first time in more than 60 years, Vice-Governor Ayman Alsayari said. “Including support of economic growth as an explicit element in the central bank’s mandate is meant to cover evolving variables such as financial innovation, which has the potential to foster economic growth if steered in the appropriate direction,” Alsayari said in a written response to questions from Bloomberg on Thursday. The central bank’s new charter also reflects “changes in the financial sector and new types of risk,” he said. The bank now reports directly to the king under the new charter, a move intended to “make its independent status clearer and more explicit,” he said. The monetary authority has provided over 100 billion riyals ($22.4 billion) to local banks in liquidity injections and to cover the costs of loan deferrals for small businesses hit by the pandemic. (Source: Bloomberg) KSA 2025 1.22 Price ∆ (YTD %) 6.71 Sovereigns Maturity Yield % 2.07 10.61 KSA A1 A-u A 2050 3.22 10.73 UAE Aa2 NR NR Abu Dhabi Aa2 AA AA Qatar Aa3 AA- AA- 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 -1.66 Oman 2025 4.87 -3.70 15.22 Oman 2029 6.02 -4.90 -5.52 Oman 2048 7.35 -8.01 2.79 Qatar 2025 0.92 6.67 1.29 Qatar 2030 1.70 12.01 5.76 Qatar 2050 2.75 24.19 2.56 8.08 0.04 7.84 S&P MENA Bond and Sukuk Index 2.04 NA 0.03 8.82 Bloomberg Emerging Markets USD Index 3.70 6.80 0.16 4.94 Bloomberg Global Aggregate Index 0.86 7.42 0.23 7.74 Interbank Rates (%) 6 Months 29/11/2020 31/12/2019 1.6875 2.9375 0.8800 2.2557 2.5333 2.7000 1.2415 2.3500 0.5692 2.1914 -0.5070 -0.3240 0.2574 1.9121 USD Swap Rates Omani CMA lists fifth issue of Sukuk programme on bond market – The Capital Market Authority (CMA) announced the listing of the fifth issue to Oman sovereign Sukuk comprising 25 million trust certificates valued at OMR25 million and due in 2022. The authority said in a statement that the offer was fully subscribed by individual investors who are entitled to a profit rate of 4.75 per cent per annum payable over a two-year maturity US Treasuries period till the due date on November 24, 2022. (Source: Oman Times) Bahrain Affirmed at B+ by S&P – Bahrain's long-term foreign currency 2-Year debt rating was affirmed by S&P at B+. Long-Term Local Currency Debt 5-Year Rating was affirmed by S&P at B+. Outlook remains stable. (Source: 10-Year 30-Year 12 Months 29/11/2020 31/12/2019 1.9375 3.1875 0.9488 2.3071 2.6833 2.8333 1.3542 2.5333 0.7436 2.2900 -0.4870 -0.2490 0.3304 1.9963 Currencies YTD ∆ (%) -87.7 -85.2 -74.6 -65.7 -55.5 -39.9 KWD SAR BHD QAR OMR AED USD 0.3052 3.7505 0.3771 3.6417 0.3850 3.6730 UK Guilts Yield % 0.15 0.36 0.84 1.57 1D ∆ (%) 0.02 0.15 0.43 1.30 AA 2030 Bloomberg GCC FI Index 1D ∆ (bps) -0.25 -0.30 -0.64 -3.06 -2.32 -4.99 Fitch KSA YTD ∆ (%) Yield % 0.2172 0.2520 0.4397 0.6165 0.8440 1.2567 AA- KSA 1D ∆ (%) KIBOR SAIBOR BHIBOR QATAR AEIBOR EURIBOR LIBOR A1 9.78 Duration (yrs) 3 Months 29/11/2020 31/12/2019 1.4375 2.7500 0.8313 2.2314 2.2500 2.6667 1.1765 2.2500 0.4800 2.2086 -0.5280 -0.3830 0.2254 1.9084 Moody’s S&P Kuwait 21.21 Yield % 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year Bloomberg) Sovereign Ratings Price ∆ (YTD %) 5.20 Yield % -0.06 -0.02 0.28 0.83 1D ∆ (bps) 0.0000 0.0000 0.0053 -0.0082 0.0000 0.0000 YTD ∆ (%) -0.70 0.03 0.00 0.00 0.00 0.00 German Bunds 1D ∆ (%) -0.01 0.00 -0.07 0.09 Yield % -0.74 -0.79 -0.65 -0.19 1D ∆ (%) 0.00 0.01 0.00 0.11 B Morocco Ba1 BBB- BB+ US Aaa AA+u AAA UK Aa2 AAu AA- China A1 A+ A+ USD 5Yr CDS 29-Nov 2020 31-Dec 2019 Kuwait 40.18 36.700 KSA 66.96 56.915 Abu Dhabi 36.19 36.090 Dubai 109.80 91.005 Qatar 37.14 36.705 Bahrain 284.67 175.995 Oman 384.73 234.400 Iraq 576.71 383.680 Egypt 363.51 277.420 Morocco 91.55 91.435 Turkey 381.06 282.130 US 12.28 10.810 UK 16.51 16.210 China 29.11 31.205 Japan 14.77 21.042 Germany 9.57 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.