Dubai's Nakheel issues $33m sukuk as part of debt deal

Indebted developer will use bond in part to settle trade creditor claims against firm
By Reuters
Mon 07 Jan 2013 04:59 PM

Dubai's Nakheel issued an Islamic bond worth AED121m (US$32.94m) on Monday, the third tranche of a sukuk that forms part of the developer's billion-dollar restructuring plan.

The bond will go towards part settlement of trade creditor claims against the company worth around AED5.3bn. This tranche takes the total amount of sukuk issued to AED4.15bn, Nakheel said in an emailed statement.

The first tranche was issued in August 2011, part of the company's US$16bn restructuring plan.

Nakheel was hit by a property slump in the Gulf Arab emirate after it overstretched itself building islands in the shape of palms and other ambitious projects.

The developer, which is owned by the Dubai government, said apart from the sukuk and related profit payments it has also paid around AED10bn to various trade creditors and contractors since November 2009.

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