Abu Dhabi's Tourism Development and Investment Company launches $1bn inaugural global bond issue

The issue of notes attracted substantial interest from global investors, with a total order book exceeding $6bn from approximately 300 investors. The final allocation of TDIC's $1bn five year issue was priced at 390 bps over US Treasuries.

Commenting on the bonds, His Excellency Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman of TDIC, stated:

"TDIC are extremely pleased with the considerable interest from investors globally in TDIC's inaugural note issuance. Such interest has resulted in the notes being significantly oversubscribed and have enabled the pricing of such notes to be set at attractive levels."

"In line with Abu Dhabi's 2030 economic plan, TDIC has set a realistic long-term vision to create investment partnerships, which will support Abu Dhabi's evolution into a world-class tourist destination," said HE Sheikh Sultan.

This bond issue is the first drawdown under TDIC's $3bn GMTN Programme, the proceeds of which will be used for general corporate funding purposes. TDIC's bond issue pays a 6.50% coupon, with a re-offer price of 99.668, yielding 6.579%, equivalent to a spread of 390 bps over US Treasuries.

TDIC's bonds, which mature in July 2014 were allocated as follows:- US investors received 30% of the notes, European investors 36% of the notes, with 23% of the notes being allocated to the Middle East and 11% to Asia.

The notes were offered by a syndicate of Arrangers and Bookrunners, namely BNP Paribas, Citi, HSBC and Standard Chartered Bank. These Arrangers and Bookrunners together with Abu Dhabi Commercial Bank and National Bank of Abu Dhabi were mandated to act as Joint Lead Managers. Allied Investment Partners acted as the General Financial Adviser to TDIC.

Lee Tabler, CEO of TDIC, highlighted TDIC's ambitions in line with Abu Dhabi's long-term economic strategy.

"TDIC has emerged as a leader in the emirate's transformation and is helping to realise the emirate's considerable tourism potential and strategic goals of delivering 2.7 million hotel guests per annum by 2012. A key element of Abu Dhabi's 2030 economic plan is for the emirate to become the cultural capital of the Middle East and through TDIC's key projects, such as Saadiyat Island, we are supporting the efforts to achieve this," Tabler added.

Earlier this year, TDIC was assigned AA status by three major credit ratings agencies, Moody's, Standard & Poor's and Fitch Ratings, which accredited TDIC with high investment grade ratings - Aa2, AA, and AA respectively.

The New York-based Moody's Investors Service assigned a foreign currency rating of Aa2 with a stable outlook to the Programme. Both Fitch and Standard & Poor's Ratings Services assigned "AA" long term credit ratings to TDIC's programme. This is in line with TDIC's ratings, which were assigned in March 2009 with a stable outlook. TDIC's issuer ratings are aligned with those of the government.

This communication is not an offer of securities for sale in the United States, Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful. TDIC has not registered, and does not intend to register, any portion of the Notes in any of these jurisdictions and does not intend to conduct a public offering of securities in any of these jurisdictions.

In particular, the Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.

In the United States, the offer is being made only to qualified institutional buyers ("QIBs") in reliance on Rule 144A under the Securities Act or another available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Outside the United States, the offer is being made to non-U.S. persons in accordance with Regulation S under the Securities Act.

Prospective purchasers are hereby notified that the sellers or issuers of the Notes may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A of the Securities Act or another available exemption from registration.