MENA Daily Fixed Income Report - 1 December

Transcription

1. MENA Daily Fixed Income Report – 1 December 2020 Kuwait Financial Centre “Markaz” News Updates Oman Utility to Sell Debt, Easing Burden on Frail State Finances – Oman’s state-owned power-transmission company plans to sell bonds in international debt markets early next year to fund capital expenditure and operations, taking pressure off the government’s strained finances. Oman Electricity Transmission Co. SAOC, known as OETC, is looking to issue a benchmark bond, people familiar with the matter said, asking not to be identified because discussions are private. A benchmark offering is typically more than $500 million. State-controlled entities in the cashstrapped state are seeking to shore up their finances as the government struggles to plug the widest budget deficit among Gulf Arab countries. Oman, the biggest Arab oil exporter outside OPEC, is exploring new ways to reduce expenditure and raise funding as measures to curb the spread of the coronavirus and a slump in oil prices batter the economy. The sultanate is said to be seeking to transfer its 60% stake in its biggest oil block to a new company, which would then raise debt that doesn’t have to reflect in the government’s books. (Source: Bloomberg) GCC Sovereign Yields Sovereigns Maturity Sovereign Ratings Price ∆ (YTD %) 5.18 Yield % Abu Dhabi 2025 0.82 Abu Dhabi 2030 1.54 Abu Dhabi 2050 2.65 Bahrain 2026 3.47 Bahrain 2030 5.00 Bahrain 2047 6.32 Dubai 2029 2.57 1.22 9.94 KSA 2030 2.05 10.69 KSA A1 A-u A 21.15 KSA 2050 3.23 10.49 UAE Aa2 NR NR -1.74 Oman 2025 4.81 -3.63 AA AA Oman 2029 6.01 -4.89 Abu Dhabi Aa2 14.90 Qatar Aa3 AA- AA- -6.18 Oman 2048 7.32 -7.65 2.70 Qatar 2025 0.95 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 Yield % 2022 0.29 1.30 Qatar 2030 1.65 12.28 Kuwait 2027 1.17 5.77 Qatar 2050 2.76 24.14 Bonds and Sukuk Indices Yield % Duration (yrs) 1D ∆ (%) YTD ∆ (%) Bloomberg GCC FI Index 2.56 8.08 -0.01 7.82 S&P MENA Bond and Sukuk Index 2.03 NA 0.04 8.87 Bloomberg Emerging Markets USD Index 3.70 6.80 -0.01 4.93 0.86 7.42 0.00 7.75 Index Name Interbank Rates (%) KIBOR SAIBOR BHIBOR Bloomberg) QATAR Tunisia Holds Interest Rates, Urges Politicians to Work Together – AEIBOR Tunisia‘s central bank kept the benchmark interest rate unchanged, urging EURIBOR LIBOR the country’s polarized political groups to work together to revive an economy roiled by labor unrest and the pandemic. A difficult outlook makes it “imperative to concert the efforts of all parties in order to achieve political and social stability that is a key” to revive the economy, the central bank said in Monday’s statement, announcing it was holding the rate at 6.25%. The North African nation’s phosphate and energy industries have seen a wave of stoppages in recent weeks in a bid to pressure authorities into creating jobs. The bank, though, said there was an improvement in the country’s external balance, with the current account deficit declining to 5.8% of GDP in the January-October period compared with 7.5% a year earlier. Monday’s rate decision was first since lawmakers approved a supplementary budget bill that calls on the central bank to fund this year’s budget deficit by buying 3 billion dinars ($1.1 billion) in Treasury bonds. (Source: Bloomberg) 2025 Maturity Kuwait Egypt Could Tap International Bond Market in 1H 2021 – Egypt Bloomberg Global Aggregate Index mulling return to international debt market in the first half of next year, Finance Minister Mohamed Maait says in interview with Al-Arabiya TV channel. Egypt expects to receive next tranche of a $5.2 billion stand-by agreement with IMF in late December. Country now expecting 4% economic growth in current fiscal year that ends in June (Source: KSA Price ∆ (YTD %) 6.62 Sovereigns 3 Months 1/12/2020 31/12/2019 1.4375 2.7500 0.8313 2.2314 2.2500 2.6667 1.2208 2.2500 0.3323 2.2086 -0.5280 -0.3830 0.2254 1.9084 6 Months 1/12/2020 31/12/2019 1.6875 2.9375 0.8800 2.2557 2.5333 2.7000 1.2989 2.3500 0.6250 2.1914 -0.5070 -0.3240 0.2574 1.9121 USD Swap Rates 1-Year 2-Year 5-Year 7-Year 10-Year 30-Year Yield % 0.2137 0.2290 0.4260 0.6150 0.8495 1.2632 Currencies 1D ∆ (bps) -0.19 -0.26 0.02 0.30 0.53 0.59 YTD ∆ (%) -87.9 -86.5 -75.4 -65.8 -55.2 -39.6 US Treasuries 2-Year 5-Year 10-Year 30-Year 12 Months 1/12/2020 31/12/2019 2.0000 3.1875 0.9488 2.3071 2.6833 2.8333 1.4443 2.5333 0.6000 2.2900 -0.4870 -0.2490 0.3304 1.9963 KWD SAR BHD QAR OMR AED USD 0.3051 3.7507 0.3771 3.6417 0.3850 3.6731 UK Guilts Yield % 0.15 0.36 0.85 1.57 1D ∆ (%) 0.01 0.00 -0.05 -0.14 Yield % -0.04 0.00 0.30 0.85 1D ∆ (bps) 0.0000 0.0080 -0.0053 -0.0082 0.0000 0.0000 YTD ∆ (%) -0.66 0.02 -0.01 0.00 0.00 0.00 German Bunds 1D ∆ (%) -0.04 -0.09 -0.27 -0.55 Yield % -0.73 -0.77 -0.63 -0.17 1D ∆ (%) -0.01 -0.06 -0.16 -0.51 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 1-Dec 2020 31-Dec 2019 Kuwait 40.19 36.700 KSA 67.65 56.915 Abu Dhabi 35.39 36.090 Dubai 110.29 91.005 Qatar 36.69 36.705 Bahrain 283.95 175.995 Oman 400.27 234.400 Iraq 576.71 383.680 Egypt 361.17 277.420 Morocco 98.21 91.435 Turkey 381.88 282.130 US 12.54 10.810 UK 15.96 16.210 China 29.68 31.205 Japan 14.90 21.042 Germany 9.03 7.080 France 14.95 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.