Bloomberg News

Nakheel Has Paid $2 Billion to Trade Creditors; Yields Decline

December 09, 2011

Dec. 8 (Bloomberg) -- Nakheel PJSC, the developer of man- made islands off Dubai’s coast, paid 7.3 billion dirhams ($2 billion) to trade creditors to date, the company said in an e- mailed statement today.

Nakheel, which restructured debt in August, issued Islamic bonds to its contractors and suppliers that month as part of an 8.5 billion-dirham program. The yield on Nakheel’s 3.8 billion- dirham sukuk maturing August 2016 dropped three basis points, or 0.03 percentage points, to 18.83 percent at 4:46 p.m. in Dubai.

The developer will issue another 1 billion dirhams of bonds, or sukuk, before the end of this year as part of its $16.1 billion restructuring deal with trade creditors, Chairman Ali Rashed Lootah said on Sept. 27.

Nakheel is also set to pay a 5 percent return on its sukuk within days and all payments will be made on due dates, a spokesman for the company confirmed in an e-mail to Bloomberg News yesterday.

--Editors: Claudia Maedler, Shanthy Nambiar

To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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