Dubai Sukuk, Abu Dhabi TDIC Spread Narrows to Lowest Since 2009
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The extra yield investors demand to hold Dubai’s 6.396 percent dollar Islamic bond over Abu Dhabi state-owned Tourism Development & Investment Co.’s 4.949 percent sukuk traded near a 16-month low after Dubai World signed a final accord to restructure its debt.
The spread narrowed 35 basis points to 213.3 after state-owned Dubai World signed the deal with creditors March 23, the data show. On March 29, the gap was 208 basis points, or 2.08 percentage points, the smallest since November 2009, when the company announced it would seek a "standstill" accord on its debt payments.