GCC Bond Chart Book · 2019-05-07 · this year (Chapter I), the bond market performance (Chapter II) and finally the bond valuations compared mostly with other emerging market peers

GCC Bond Chart BookA comprehensive overview of the risk and return parameters of the key securities in the GCC Fixed Income space

Luciano Jannelli

Prerana Seth

Mohammed Al Hemeiri

1H 2018

GCC Bond Markets – Key Takeaways

This GCC Bond Chart Book provides a comprehensive overview of the trends in GCC dollar bond issuances so far

this year (Chapter I), the bond market performance (Chapter II) and finally the bond valuations compared mostly with

other emerging market peers (Chapter III and Chapter IV).

Like most emerging bond markets, GCC bonds also have come under pressure in 2018. Our key takeaway however is

that – with the exception of Bahrain and Oman – GCC markets have been relatively resilient, confirming our view that

the region’s financial markets (including equities) remain relatively insulated from (the repricing of) global growth

concerns (see in particular on page 23 the performance of the higher quality sovereigns).

Yet, when comparing GCC sovereign bond market prices with global sovereign bond market prices we can see that -

for each credit class - GCC bonds still appear to be cheaper (this, of course, is most marked for Bahrain and Oman).

Whilst GCC corporate credits have been relatively resilient when compared to corporate bond markets of other EM

regions (Page 22), there still appears to be value if one contrasts current price trends with past price movements in

the presence of a rising oil price.

All in all, ADCB’ s House View remains cautious about the outlook of global risk assets, and in particular emerging

market assets (bonds and equities) in which we have a tactical underweight. Having said so, within the broader asset

class we are relatively constructive on the GCC bond markets, and maintain a tactical overweight in the higher quality

sovereigns.

2

Index

Chapter I: Primary market bond issuances in

GCC

Chapter II: GCC bond performance

Chapter III: Credit rating valuation

Chapter IV: GCC valuation analysis

3

Chapter I: Primary market bond

issuances in GCC

Sovereign dollar bond issuance trend

5

4 3 3 3

40

50

32

0

10

20

30

40

50

60

2012 2013 2014 2015 2016 2017 2018*

USD

bn

Sovereign dollar bond issuance has more than tripled

GCC sovereign dollar bond issuance (USD bn)

0 20 40 60

2016

2017

1H 2018

USDbn

Bulk of issuance from Saudi Arabia

UAE Bahrain Kuwait Oman Qatar Saudi Arabia

Source: Bloomberg, ADCB

Corporate dollar bond issuance trend

6

9

19

22

14

24

31

21

0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016 2017 2018*

USD

bn

Corporate dollar bond issuance

0

5

10

15

20

25

30

35

2016 2017 1H 2018

USD

bn

Financials and Agencies dominate issuance

Agency Financials Industrial

Real Estate Utility


7

Strong demand for GCC sovereign bond issuers

4.4x4.7x

2.3x

2.1x 2.4x

0

10

20

30

40

50

60

70

Qatar's 3-tranchebond deal

Saudi 3-tranchebond deal

Oman's 3 tranchebond deal

Bahrain 7.5yrSukuk

Sharjah 7.5yrSukuk

USD

bn

Strong demand for bond issuances this year

Issue size Bids amount received


Saudi sovereign dollar bond issuance 2018

8

11

52

0

20

40

60

80

USD

bn

Strong demand for the 3-tranche bond

deal

Issue size

4.5

3

3.5

Issue size (bn)

7y 12y 31y

T+140

T+175

T+210

T+170

T+200

T+235

130

150

170

190

210

230

250

7y 12y 31y

bp

Saudi USD11bn 3-tranche bond deal

Final Pricing Initial Pricing

-10%

10%

30%

50%

70%

90%

Fundmanagers

Banks Central banks Insurance &pension funds

% o

f th

e p

rim

ary

issu

ance

Subscribers’ share of total issuance

7y 12y 31y

0%

10%

20%

30%

40%

50%

60%

US Europe Asia Middle east% o

f th

e p

rim

ary

issu

ance

Subscribers’ nationality as a share of total issuance

7y 12y 31y

Note: “T” refers to similar-maturity treasuries Source: Bloomberg, ADCB

Other GCC sovereign issuances 2018

9

Oman USD6.5bn 3-tranche dollar bond issuance

Bahrain USD1bn 7.5yr Dollar Sukuk

1.25

2.5

2.75

Issue size (bn)

5yr 10yr 30yr

59%16%

14%

9%2%

Region-wise distribution

MENA Europe UK US Asia

63%

33%

3% 1%Investor-type distribution

Banks/Private banks Fund managers

Pensions and Insurance Others

Note: “T” refers to similar-maturity treasuries Source: Bloomberg, ADCB

T+190

T+310

T+395

T+205

T+325

T+410

150

250

350

450

5yr 10yr 30yr

Oman USD6.5bn 3-trance bond deal

Final Pricing Initial Pricing

Major corporate dollar bond deals

10

Note: Deals of only amount issued greater than USD500m are shortlisted, *Priced at issue indicated as spread over Treasury (T) or as mid-swap spread (M) , Bloomberg sector classification has been used. Source: Bloomberg

Corporate Issuer

Bloomberg

Ticker Sector Country

Amount

Issued Coupon Maturity

Maturity

Type Issue Date

Moody

Rtg

Priced at

issue

(spread,

bp)*

QNB Finance Ltd QNBK Agency QA 1500 0 5/31/2021 AT MATURITY 5/31/2018 Aa3 -


Abu Dhabi National Energy Co PJSC TAQAUH Agency AE 1000 4.88 4/23/2030 AT MATURITY 4/23/2018 A3 T+205

DIB Sukuk Ltd DIBUH Financials AE 1000 3.63 2/6/2023 AT MATURITY 2/6/2018 A3 M+115


Abu Dhabi National Energy Co PJSC TAQAUH Agency AE 1000 4.88 4/23/2030 AT MATURITY 4/23/2018 A3 T+ 205

Shelf Drilling Holdings Ltd SHLFDI Industrial AE 900 8.25 2/15/2025 CALLABLE 2/7/2018 B2 T+557

Oztel Holdings SPC Ltd OTELOM Agency OM 900 6.63 4/24/2028 AT MATURITY 4/24/2018 Baa3 T+405

ADCB Finance Cayman Ltd ADCBUH Agency AE 750 4.00 3/29/2023 AT MATURITY 3/29/2018 - T+145

Abu Dhabi National Energy Co PJSC TAQAUH Agency AE 750 4.38 4/23/2025 AT MATURITY 4/23/2018 A3 T+160

QNB Finance Ltd QNBK Agency QA 720 0.00 1/23/2048 CALLABLE 1/23/2018 Aa3 -

Fab Sukuk Co Ltd FABUH Agency AE 650 3.63 3/5/2023 AT MATURITY 3/5/2018 Aa3 M+95

First Abu Dhabi Bank PJSC FABUH Agency AE 610 0.00 1/22/2048 CALLABLE 1/22/2018 Aa3 -

Oztel Holdings SPC Ltd OTELOM Agency OM 600 5.63 10/24/2023 AT MATURITY 4/24/2018 Baa3 -

Zahidi Ltd EMIRAT Industrial AE 600 4.50 3/22/2028 SINKABLE 3/22/2018 - T+198

Shelf Drilling Holdings Ltd SHLFDI Industrial AE 600 8.25 2/15/2025 CALLABLE 2/7/2018 B2 T+557

ADCB Finance Cayman Ltd ADCBUH Agency AE 540 0 1/18/2048 CALLABLE 1/18/2018 - -

CBQ Finance Ltd COMQAT Financials QA 500 5.00 5/24/2023 AT MATURITY 5/24/2018 A3 M+213

Bank Muscat SAOG BKMBOM Financials OM 500 4.88 3/14/2023 AT MATURITY 3/14/2018 Baa3 M+230

Noor Sukuk Co Ltd NOORBK Agency AE 500 4.47 4/24/2023 AT MATURITY 4/24/2018 - M+165

Dar Al-Arkan Sukuk Co Ltd DARALA Industrial SA 500 6.88 3/21/2023 AT MATURITY 3/21/2018 B1 M+437

Union National Bank PJSC UNBUH Agency AE 500 4.00 3/13/2023 AT MATURITY 3/13/2018 A1 M+135

SIB Sukuk Co III Ltd SIB Financials AE 500 4.23 4/18/2023 AT MATURITY 4/18/2018 A3 M+150

11

Weaker economies need to scale up their diversification

-25

-15

-5

5

15

25

35

45

2008 2010 2012 2014 2016 2018

Fisc

al b

alan

ce (

% o

f G

DP

)

..will need to raise borrowing to fund their fiscal deficits

Bahrain Kuwait OmanQatar Saudi Arabia UAE

-40

-20

0

20

40

60

2008 2010 2012 2014 2016 2018

Cu

rren

t A

cco

un

t B

alan

ce (

% o

f G

DP

)

Bahrain and Oman have weak external balances..

Bahrain Kuwait Oman

Qatar Saudi Arabia UAE

Source: IMF, ADCB

12

Abu Dhabi Sovereign Dollar Debt Maturity Profile

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046

USD

bn

Principal Interest


13

Dubai Sovereign Dollar Debt Maturity Profile

0

2

4

6

8

10

122

01

8

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

20

33

20

34

20

35

20

36

20

37

20

38

20

39

20

40

20

41

20

42

20

43

USD

bn

Principal Interest


14

Saudi Arabia Sovereign Dollar Debt Maturity Profile

0

1

2

3

4

5

6

7

8

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048

USD

bn

Principal Interest


15

Kuwait Sovereign Dollar Debt Maturity Profile

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

USD

bn

Principal Interest


16

Bahrain Sovereign Dollar Debt Maturity Profile

0

0.5

1

1.5

2

2.5

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046

USD

bn

Principal Interest


17

Oman Sovereign Dollar Debt Maturity Profile

0

0.5

1

1.5

2

2.5

3

3.5

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048

USD

bn

Principal Interest


Chapter II: GCC bond market

performance

GCC countries: US dollar bond performance

versus EM indices

19

-5

-4.5

-4

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

Bahrain Saudi Arabia Kuwait Qatar

% r

etu

rn

Jan-Jun 2018

-6

-5

-4

-3

-2

-1

0

EM EMLATAM

EMEMEA

EMAsia

% r

etu

rn

Source: Bloomberg, Barclays indices, ADCB

GCC Sovereign: 10-year dollar bond yield

performance

20

3.75

4.75

5.75

6.75

7.75

8.75

9.75

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-181

0-y

ear

bo

nd

yie

ld (

%)

Bahrain has underperformed the most versus its peers

Brazil Bahrain Oman Argentina

2.8

3.3

3.8

4.3

4.8

5.3


10

-yea

r b

on

d y

ield

(%

)

Better quality sovereigns in GCC have been resilient

Mexico Qatar Saudi Arabia Abu Dhabi

South Korea Indonesia Dubai Kuwait


GCC Sovereign: 30-year dollar bond yield

performance

21

5

6

7

8

9

10

11


0-y

ear

bo

nd

yie

ld (

%)

Bahrain at same levels as Argentina

Turkey Bahrain Oman Argentina Brazil

3

3.5

4

4.5

5

5.5

6


Dubai is trading cheap versus other EM peers

Mexico Qatar Saudi Arabia Abu Dhabi

South Korea Indonesia Dubai


GCC corporate bond performance

22

150

200

250

300

350

400

Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

GCC credit relatively resilient..

EM Middle East Corp. Bond Index

EM Asia Corp. Bond Index

EM East. Europe Corp. Bond Index

EM EMEA Corp. Bond Index

20

30

40

50

60

70

80

90

100

110

120

125

130

135

140

145

150

155

Jan-14 May-15 Sep-16 Jan-18

USD

/bb

l

..yet more gains could be warranted

GCC credit index (LHS) Brent Crude (RHS)

Source: Credit Suisse Indices, Bloomberg Barclays Indices, Bloomberg, ADCB

GCC CDS performance versus EM

23

70

90

110

130

150

170

190

210

230

250

70

80

90

100

110

120

130

CD

S sp

read

(In

dex

ed a

t Ja

n 2

01

8=1

00

)

CD

S sp

read

(In

dex

ed a

t Ja

n 2

01

8=1

00

)

Bahrain CDS climbed the record highest level

Dubai Saudi Arabia Kuwait

Abu Dhabi Bahrain (RHS) EM average

-60 40 140 240

Qatar

South Korea

Saudi Arabia

Kuwait

Abu Dhabi

Dubai

Czech

Russia

Poland

China

Philippines

Mexico

India

Malaysia

Indonesia

South Africa

Egypt

Brazil

Bahrain

Turkey

Argentina

Change in 5-year CDS (Jan-Jun 2018)

Bahrain has underperformed the most


Chapter III: Credit rating

valuation

GCC sovereigns vs EM peers- 10yr segment

25

Note: The ratings refer to Fitch ratings, * DEWA credit rating used as a proxy for Dubai credit rating Source: Bloomberg, ADCB

AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B

Brazil

ColombiaMexico

Chile

Peru

Turkey

Russia

South Africa

Qatar Saudi Arabia

HungaryAbu DhabiPoland

Bahrain

Romania

Kuwait South Korea

China

Indonesia

Philippines

Oman

Argentina

Egypt

Dubai*

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10

-ye

ar y

ield

s

GCC sovereigns trading cheap versus peers

GCC vs EM peers- 30yr segment

26


AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B

Brazil

ColombiaMexico

Chile Peru

Turkey

Russia

South Africa

QatarSaudi Arabia

HungaryAbu Dhabi

Bahrain

Romania

South Korea

Indonesia

Oman

Argentina

Egypt

Dubai

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

30

-yea

r yi

eld

s

GCC sovereigns appear cheap versus other EM

GCC CDS versus ratings

27


AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B

Brazil

Colombia

Mexico

ChilePeru

Turkey

Russia

South Africa

Qatar Saudi ArabiaDubai*

HungaryAbu Dhabi Poland

Bahrain

Romania

Czech

Kuwait

South KoreaChina

Indonesia

IndiaMalaysia

Philippines

ThailandUK Spain

Italy

France Austria Belgium

Argentina

0

50

100

150

200

250

300

350

400

450

500

CD

S sp

read

s (b

p)

GCC sovereigns have cheapened versus other markets

FAB

HSB

C M

EN

BK

AD

CB

AD

IBEm

irat

es Is

lam

ic B

ank

Emir

ates

NB

DU

NB

CB

KG

ulf

Ban

kA

l Ah

li B

ank

of

Ku

wai

tA

l Ah

li U

nit

ed b

ank

Bu

rgan

Ban

kK

uw

ait

Inte

rnat

ion

al B

ank

Ku

wai

t Fi

nan

ce H

ou

seB

ou

bya

n B

ank

War

ba

Ban

kQ

atar

Nat

ion

al B

ank

Du

bai

Isla

mic

Ban

kM

ash

req

Ah

li B

ank

QSC

Qat

ar Is

lam

ic B

ank

DO

HA

BA

NK

Al K

hal

iji B

AN

KC

BD

No

or

Ban

k A

l-B

ilad

*R

AK

BA

Nk

NB

FSh

arja

h Is

lam

ic B

ank

Nat

ion

al C

om

mer

cial

Ban

kB

anq

ue

Sau

di F

ran

siR

iyad

Ban

kSa

mb

a Fi

nan

cial

gro

up

Al R

ajh

i Ban

kA

rab

nat

ion

al b

ank

Ah

li U

nit

ed B

ank

Gu

lf In

tl B

ank

Alin

ma

Ban

kSa

ud

i Ho

llan

di

Ban

k A

lJaz

ira

Sau

di I

nve

stm

ent

Ban

kU

nit

ed A

rab

ban

kSa

ud

i Bri

tish

Ban

kB

ank

Mu

scat

NB

OB

ank

Dh

ofa

rB

ank

Soh

ar S

OA

GN

BB

Om

an A

rab

Ban

k*B

ank

Niz

wa*

Bah

rain

Isla

mic

Ban

k

GCC Financials

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

BB-

B+

B

GCC Financials credit rating

28

Note: The ratings refer to Fitch ratings, *S&P rating used as substitute where the corporate/bank not rated by Fitch ratings Source: Bloomberg, ADCB

Mu

bad

ala

IPIC

Etis

alat

Qat

ari D

iar

Qat

ari P

etro

leu

m

Do

lph

in e

ner

gy

Nak

ilat

RA

SGA

S

Etih

ad

Oo

red

oo

SEC

O

SAB

IC

Sau

di T

elec

om

TAQ

A

DEW

A

DP

Wo

rld

**

Jafz

**

MA

F

DIF

C

Ald

ar

Ku

wai

t p

roje

cts

Co

Emaa

r

OM

GR

ID

Dam

ac

Ezd

an H

old

ing

Bat

elco

Top

az w

orl

d**

Ku

wai

t en

ergy

GCC Corporates

AAAA-A+

AA-

BBB+BBB

BBB-BB+

BBBB-B+

BB-

CCC+

GCC corporates credit rating

29

Note: The ratings refer to S&P ratings, ** Fitch ratings used as substitute where the corporate/bank not rated by S&P ratings Source: Bloomberg, ADCB

Chapter IV: GCC valuation

analysis

GCC sovereign dollar yield curves

31

BHRAIN 5.875 1/21 BHRAIN 6.125 8/23 BHRAIN 7 10/28BHRAIN 7.5 9/47

OMAN 3.625 6/21 OMAN 3.875 3/22OMAN 5.375 3/27

OMAN 6.5 3/47

4

6

8

10

12

3yr 5yr 10yr 30yr

ADGB 2.125 5/21

ADGB 2.5 10/22

ADGB 3.125 10/27

ADGB 4.125 10/47

DUGB 5.59 6/21DUGB 3.875 01/23

DUGB 5 04/29

DUGB 5.25 1/43

KSA 2.375 10/21KSA 2.875 3/23

KSA 3.625 3/28

KSA 4.625 10/47

KUWIB 2.75 3/22

KUWIB 3.5 3/27QATAR 2.375 6/21 QATAR 3.875 4/23

QATAR 4.5 4/28

QATAR 5.103 4/48

3

3.5

4

4.5

5

5.5

6

3yr 5yr 10yr 30yr


Abu Dhabi z-spread and yield curve (YTD

change)

32

-10

10

30

50

70

90

110

130

150

170

190

0

1

2

3

4

5

Z-sp

read

(b

ps)

Yiel

d

29-Dec (YC) 28-Jun (YC) 29-Dec (Z-spread) 28-Jun (Z-spread)

Note: YTD change: 29th December 2017 to 28th June 2018, , Source: Bloomberg, ADCB

The z-spread is our preferred measure for analyzing the relative value of a bond. The z-spread is the additional yield one gets after having calculated an equilibrium price based on the effective cash flows and comparing that price with the market price. A higher spread implies that the bond is trading at a discount and negative spread implies that the bond is trading at a premium. Note that the recent general upward shift in the yield curve indicates that bonds have sold off across all maturities. Thus yield curve analysis allows us to see which maturities have suffered more and which have suffered less.

Dubai z-spread and yield curve (YTD

change)

33Note: YTD change: 29th December 2017 to 28th June 2018, , Source: Bloomberg, ADCB

0

50

100

150

200

250

300

350

0

1

2

3

4

5

6

7

Z-sp

read

Yiel

d



Saudi Arabia z-spread and yield curve (YTD

change)


0

50

100

150

200

250

0

1

2

3

4

5

6

Z-sp

read

Yiel

d



Kuwait z-spread and yield curve (YTD

change)


45

55

65

75

85

95

105

115

125

135

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

KUWIB 2.75 3/22 KUWIB 3.5 3/27

Z-sp

read

Yiel

d



Bahrain z-spread and yield curve (YTD

change)


200

250

300

350

400

450

500

550

600

650

0

1

2

3

4

5

6

7

8

9

10

Z-sp

read

Yiel

d



Oman z-spread and yield curve (YTD

change)


100

150

200

250

300

350

400

450

500

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Z-sp

read

Yiel

d



GCC corporate top performers (YTD spread

performance)

38

Note : YTD change: 29th Dec 2017 to 28th June 2018, All bonds are dollar denominated and maturing in 2019 or above “PERP” refers to Perpetual, “Float” refers to floating rate bond Source: Bloomberg, ADCB

-27-30-34-34-41-42-42-43-43-44-45-46-46-46-48-50-53-59-62-62-68

-383-425

-451-635

-700-600-500-400-300-200-1000

EBIUH 5 ¾ PERPCOMQAT 2 ⅞ 06/24/19

EMIRAT 3 ⅞ 03/19/23 EBIUH Float 03/31/24 DPWDU 1 ¾ 06/19/24

MASQUH Float 11/09/22 MASQUH Float 10/25/22 MASQUH Float 09/19/22 MASQUH Float 09/07/22

WARBAB 6 ½ PERPEBIUH 6 ⅜ PERP

BUBYAN 6 ¾ PERP MASQUH Float 11/09/20 MASQUH Float 06/08/22 MASQUH Float 05/22/22 MASQUH Float 08/29/19 MASQUH Float 02/28/21 MASQUH Float 05/25/20 MASQUH Float 01/18/20 MASQUH Float 10/21/19

EBIUH Float 11/27/23 EBIUH 5 11/27/23

EBIUH Float 05/16/19 KUWAIE 9 ½ 08/04/19 EBIUH Float 02/27/19

Z-spread (bp)

Performance from 29th Dec 2017 to 28th June 2018

The z-spread is our preferred measure for analyzing the relative value of a bond. The z-spread is the additional yield one gets after having calculated an equilibrium price based on the effective cash flows and comparing that price with the market price. A higher spread implies that the bond is trading at a discount and negative spread implies that the bond is trading at a premium.

GCC corporate bottom performers (YTD spread

performance)

39

Note : YTD change: 29th Dec 2017 to 28th June 2018, All bonds are dollar denominated and with maturing in 2019 or above “PERP” refers to Perpetual, “Float” refers to floating rate bond Source: Bloomberg, ADCB

38394041414343

50535455

61717475

88103

113122

141159

198334335

478

0100200300400500600

FABUH 4.8 09/15/36 AUBKWK 5 ½ PERP FABUH 4.365 08/09/32 FABUH 4.1 09/24/32 OMGRID 3.958 05/07/25 EBIUH Float 08/16/20 KWIPKK 4 ½ 02/23/27 DOLNRG 5.888 06/15/19 KWIPKK 5 03/15/23 BKMBOM 3 ¾ 05/03/21 OMGRID 5.196 05/16/27

KWIPKK 9 ⅜ 07/15/20 EBIUH Float 04/10/19 EBIUH 5.35 07/11/22 BKDBOM 6.85 PERP BATELC 4 ¼ 05/01/20

ADIBUH 6 ⅜ PERP MAFUAE 5 ½ PERP DAMACR 6 ¼ 04/20/22 ALHILA 5 ½ PERP

MAFUAE 7 ⅛ PERP EBIUH Float 03/11/23

EAPART 6 ⅞ 09/28/20ERESQD 4 ⅞ 04/05/22ERESQD 4 ⅜ 05/18/21

Z-spread (bp)



GCC Investment Grade corporates (BBB- rated

and above only) YTD spread performance

40


-7-8-8-9-13-14-14-15-17-19

-34-41-42-42-46-50-53-68

-383-425

-500-400-300-200-1000

SECO 5.06 04/08/43TAQAUH 3 ⅝ 06/22/21TAQAUH 3 ⅝ 06/22/21

UNBUH Float 02/28/22 EBIUH 4.27 09/28/37 EBIUH 4.27 09/28/37

EBIUH Float 10/12/20 EBIUH Float 01/26/20

MAFUAE 4 ½ 11/03/25 EIBUH 3.542 05/31/21 EBIUH Float 03/31/24 DPWDU 1 ¾ 06/19/24

MASQUH Float 11/09/22 MASQUH Float 10/25/22 MASQUH Float 11/09/20 MASQUH Float 08/29/19 MASQUH Float 02/28/21

EBIUH Float 11/27/23 EBIUH 5 11/27/23

EBIUH Float 05/16/19

Top performers..

Z-spread (bp)

353536363737383840414141

5050

545555

7174

198

050100150200

RASGAS 5.838 09/30/27 RASGAS 5.838 09/30/27 MAFUAE 5 ¼ 07/05/19 EBIUH Float 06/23/21 TAQAUH 6 ½ 10/27/36 TAQAUH 6 ½ 10/27/36 GULINT 3 ½ 03/25/22 FABUH 4.8 09/15/36 FABUH 4.365 08/09/32 FABUH 4.1 09/24/32 OMGRID 3.958 05/07/25 OMGRID 3.958 05/07/25 DOLNRG 5.888 06/15/19 DOLNRG 5.888 06/15/19 BKMBOM 3 ¾ 05/03/21 OMGRID 5.196 05/16/27 OMGRID 5.196 05/16/27 EBIUH Float 04/10/19 EBIUH 5.35 07/11/22 EBIUH Float 03/11/23

..bottom performers

Z-spread (bp)


GCC High Yield corporates (rated BB+ and

below only) YTD spread performance

41


478

335

159

122

113

88

54

41

41

-13

-18

-451

-600-400-2000200400600

ERESQD 4 ⅜ 05/18/21

ERESQD 4 ⅞ 04/05/22

MAFUAE 7 ⅛ PERP

DAMACR 6 ¼ 04/20/22

MAFUAE 5 ½ PERP

BATELC 4 ¼ 05/01/20

BKMBOM 3 ¾ 05/03/21

OMGRID 3.958 05/07/25

OMGRID 3.958 05/07/25

FABUH 5 ¼ PERP

DAMACR 4.97 04/09/19

KUWAIE 9 ½ 08/04/19

Z-spread (bp)



UAE financials YTD spread performance

42


141103

15-11

-18-19

-42

-42-43-43-46-46-48-50

-53-59-62-63

-100-50050100150200

ALHILA 5 ½ PERPADIBUH 6 ⅜ PERP

CBDUH 4 11/17/20

NOORBK 6 ¼ PERP DIFCAE 4.325 11/12/24 EIBUH 3.542 05/31/21

MASQUH Float 11/09/22 MASQUH Float 10/25/22 MASQUH Float 09/19/22 MASQUH Float 09/07/22

MASQUH Float 11/09/20 MASQUH Float 06/08/22 MASQUH Float 05/22/22 MASQUH Float 08/29/19 MASQUH Float 02/28/21 MASQUH Float 05/25/20

MASQUH Float 01/18/20 MASQUH Float 10/21/19

Z-spread (bp)



43

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Documents

GCC Bond Chart Book · 2019-05-07 · this year (Chapter I), the bond market performance (Chapter II) and finally the bond valuations compared mostly with other emerging market peers