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

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.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Business Man

The crazy banks will buy. They can get bailed out when it goes pear shaped whereas you and I cant.

Posted by: mohd

hmm, I wouldn't touch this sukuk with a barge-pole. Not a wise investment me thinks...

All comments are subject to approval before appearing

Further reading

Features & Analysis
Construction conflict blights Dubai's off-plan landscape

Construction conflict blights Dubai's off-plan landscape

At a time when investors had hoped Dubai’s grey real estate legislation...

The waiting game: Abu Dhabi's property market

The waiting game: Abu Dhabi's property market

It is rare for an emerging market capital city to experience...

Is Gulf developers' love of London set to cost them a lot more?

Is Gulf developers' love of London set to cost them a lot more?

Controversial changes to property planning legislation in the...

1
Most Discussed
sponsoredTracking