Guggenheim Progress Cuts TDIC Yield to Record

Improved prospects for the completion of branches of the Guggenheim and Louvre museums in Abu Dhabi have helped drive Tourism Development & Investment Co.’s Islamic bond yield to a record low as the emirate’s property market recovers.

The yield on the 4.949 percent sukuk due October 2014 declined 92 basis points this year to 1.96 percent on Aug. 29. The rate, which rose to 1.97 percent on Aug. 30, reached a seven-month high on Nov. 25 after state-owned TDIC said it will delay completing the museums. The average yield on sukuk in the United Arab Emirates fell 73 basis points this year to 3.8 percent, according to the HSBC/Nasdaq Dubai UAE US Dollar Sukuk Index.

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