DIFC Inv'ts to make payment on $1.25bn sukuk

DIFC Investments, part of the group which operates Dubai's tax-free business hub, said its unit will make a periodic profit distribution on its $1.25 billion Islamic bond on time, a statement said on Wednesday.

The amount to be repaid for the three month period from June 14 to Sept 13 by Dubai Sukuk Centre is $2.88m, a statement posted on Nasdaq Dubai exchange said.

DIFC Investments has been grappling with a debt pile of more than $3bn, hurt mainly by a fall in the value of its investments.

In a note earlier in August, J.P. Morgan Securities said the government of Dubai may write off its $1 billion loan to the state-owned entity in exchange for shares and infuse additional capital of up to $600 million to help the struggling group restructure its debt. (Reuters)