Quarter Highlights MENA Fixed Income 2Q15

• Global sukuk issuances on the rise

• Investors worried about a crash in the bonds prices

• Qatar growth to remain strong at over next 2 years

• Saudi Debt Markets Could Open to Foreign Investors

• Jordan’s first sovereign issue of sukuk coming up soon

• UAE to witness the strongest growth in private wealth in the GCC

Contents

MENA Fixed Income Analytics ............... 2

Fixed Income Quarter Breakdowns ....... 3

Q2

MENA FIXED INCOME INSIGHT – 2Q 2015

mena.thomsonreuters.com

Q2 2015 MENA FIXED INCOME INSIGHT

2

MENA Fixed Income Analytics

MENA Fixed Income Trend by Value and Volume

Q2 2014 Q3 2014

Sukuk Size ($M) Bond size ($M) Total Fixed Income Issues

Q4 2014 Q1 2015 Q2 2015

27,223 15,282 11,975 22,600 20,825

8,749

3,770

2,962

5,7874,439

75

90

64

103

85

Q2 2015 MENA FIXED INCOME INSIGHT

3

Fixed Income Quarter Breakdowns

By country

By Exchange Listing

By Sector

Sukuk Total Size of Issues ($M)

Egypt

UAE

Jordan

Kuwait

Saudi Arabia

Bahrain

Morocco

Oman

Qatar

Tunisia Bonds Total Size of Issues ($M)

9,698

2,849 1,250

2,382

2,189

2,107

930 553

1,320

1,305

550

151

Others

SIX

Luxembourg SE

London SE

Amman SE

NASDAQ Dubai

Irish SE

Egypt SE

Fixed Income Total Size of Issues ($M)

181

206

393

882

2,600

5,150

8,198

750

Government Institutions

Financial Services

Industrial Manufacturing

Power and Utilities

Transport

Construction

Real Estate

Food and Beverages

Sukuk Total Size of Issues ($M)

Bond Total Size of Issues ($M)

13,820 533

4,194 3,533

1,000

500

373

280

31

1,000

Q2 2015 MENA FIXED INCOME INSIGHT

4

Breakdown of Sukuk by Structure

Wakala Al-Istithmar

Total Size of Offerings $ (M) Number of Issues

Modarabah Modarabah-Murabaha

Al Salaam Murabaha Lijarah

1,250 1,067 816 342 191267126 507 46

2

1

2 2

3

1

3

By Market Type By Issuer Type

Financial ServicesIndustrial Manufacturing

10,779

Real EstateLeisure and TourismConstructionAgricultureHealth CareServices

Domestic ($M)Internationl ($M)

14,485

SovereignCorporateQuasi Sovereign

Financial ServicesIndustrial ManufacturingReal EstateLeisure and TourismConstructionAgricultureHealth CareServices

14,820

5,994

10

MENA Bond Maturity Pipeline

13,399

17,719

9,602

15,018

Size ($M)

3Q15 4Q15 1Q16 2Q16

Q2 2015 MENA FIXED INCOME INSIGHT

5

MENA Fixed Income Pipeline

MENA Fixed Income Top Lead Managers in 2Q15 by Size ($M)

MENA Fixed Income Top Lead Managers in 2Q15 by Number of Issues

Issuer Country Currency Size ($M) Type

Lebanon Eurobond Lebanon USD 1,300 Sovereign

CBD Perpetual Bond UAE USD 750 Corporate

Almarai Senior Sukuk Saudi Arabia SAR 533 Corporate

Arab National Bank Sukuk Saudi Arabia SAR 533 Corporate

Bahrain Treasury Bills 27 Bahrain BHD 530 Sovereign

Size ($M) Number of Issues

Citigroup Global Markets Limited 5,450 7

JP Morgan 4,633 6

Morgan Stanley 4,000 5

HSBC Bank 3,225 7

Emirates NBD PJSC 2,163 6

Size ($M) Number of Issues

Citigroup Global Markets Limited 5,450 7

HSBC Bank 3,225 7

JP Morgan 4,633 6

Emirates NBD PJSC 2,163 6

Morgan Stanley 4,000 5

Top MENA International Fixed Income Transactions in 2Q15 ($M)Issuer Country Issue Date Issue Size Coupon Rate Tenor (Tears)

Egypt Eurobond 2025 Egypt Jun-15 1,500 5.870% 10

Jordan Eurobond 2022 Jordan Jun-15 1,000 2.578% 7

OCP Bond 2025 Morocco Apr-15 1,000 4.500% 10.5

Lamar Funding Bond 2025 Oman May-15 1,000 3.958% 10

DIB Sukuk 2017(Tranche 2) UAE May-15 750 2.921% 5

For further information, contact bonds.zawya@thomsonreuters.com

Important NotesBonds Data covers all conventional bonds with tenors of 1 year and above.Sukuk Data covers all Islamic bonds.MENA includes Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia and UAE.Data is correct as of Q2 2015.Prepared by Georges Daoud (georges.daoud@thomsonreuters.com).

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