Abu Dhabi’s TDIC Plans to Issue 5-Year Islamic Bonds

Tourism Development & Investment Co., a state-owned developer of hotels in Abu Dhabi, will issue five-year Islamic bonds as part of a $1.45 billion Islamic fund- raising program, a banker familiar with the deal said today.

The Islamic bonds, also known as sukuk, may be priced to yield around 250 basis points above the benchmark mid-swap rate, according to the banker who didn’t want to be identified because details are private.

TDIC sold $1 billion of five-year conventional bonds in June that were priced to yield 390 basis points over benchmark U.S. Treasuries, according to data compiled by Bloomberg. That bond, which is up 7.4 percent since it was issued, was trading at $1.0779 at 12:15 p.m. in Dubai, yielding 4.64 percent.