TDIC sees higher 2011 loss; delays bond sale

Abu Dhabi, July 18, 2011

Abu Dhabi's government-owned Tourism Development and Investment Co (TDIC) will incur higher losses in 2011 compared with last year and has delayed a potential bond sale to the fourth quarter or 2012, its chief financial officer said.

"In 2011, the loss will increase on a net income basis, EBITDA will be flat. We will continue to be a net cash user for the next 5 to 7 years," said Shaun O'Connor, TDIC's chief financial officer.

TDIC, tasked with bringing branches of the Louvre and Guggenheim museums to Abu Dhabi, recently completed roadshows for a potential bond issue but has delayed the sale due to current market conditions. The firm plans to issue a bond in the fourth quarter or next year when markets stabilise, the CFO said.

"We will issue in Q4 if markets stabilise, if not then, next year. We don't need the money......" O'Connor said.

TDIC may have put on hold plans for a 10-year bond issue, two banking sources said last week. – Reuters

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