Abu Dhabi’s Louvre Builder Said to Be Seeking $1 Billion LoanArif Sharif
Tourism Development & Investment Co., the Abu Dhabi-owned developer of the Louvre and Guggenheim museums, is talking to lenders for a $1 billion loan to replace an existing facility, two bankers familiar with the plan said.
Banks have been asked to submit pricing for the deal to replace a $600 million three-year loan maturing in December, the bankers said, asking not to be identified because the information is private. The company is seeking to pay less than the 1.35 percentage points over the London Interbank Offered Rate it pays on the current loan, one of the bankers said.
TDIC is building local branches of the Paris and New York museums on Saadiyat Island, which is being developed as part of the United Arab Emirates’ push to diversify its economy from oil. The $27 billion worth of projects on the island include the Zayed National Museum and a New York University campus. The company is also building homes and offices.
An Abu Dhabi-based spokesman for TDIC, who asked not to be identified because of company policy, declined to comment.
TDIC is one of four Abu Dhabi-government owned companies whose debt carries a sovereign guarantee, facilitating fundraising, according to one of the bankers. Abu Dhabi, the richest and biggest of seven states that make up the United Arab Emirates, holds about 6 percent of global oil reserves.