TDIC delays bond, sees higher 2011 loss

Abu Dhabi's Tourism Development Investment Company (TDIC) will explore alternative funding options after putting off a planned bond sale until at least the fourth quarter, its chief financial officer said on Monday.

Government-owned TDIC, tasked with bringing branches of the Louvre and Guggenheim museums to Abu Dhabi, recently completed roadshows for the potential bond issue but delayed the sale due to market conditions.

"We will issue in Q4 if markets stabilise, if not then next year. We don't need the money right now. From a capital management point, it made sense to wait," Shaun O'Connor, chief financial officer, told reporters.

O'Connor also said the company's net loss would widen in 2011 and said its yearly budget had been cut by Dh5 billion ($1.4 billion) as part of a strategy to prolong its project delivery schedule amid a market downturn.

The company, which made a net loss of Dh1.2 billion in 2010, expects a higher loss this year as five new projects come on stream. O'Connor attributed the 2010 loss to depreciation on new buildings and higher staffing costs.

"We will continue to be a net cash user for the next five to seven years," he said, adding TDIC was exploring other funding options including tapping commercial banks.

 "Banks are willing to lend, the rates are good."