Dubai's Nakheel pays $59.9m to trade creditor sukuk

Developer says it has issued instructions to make profit payment on due date of June 15
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By Andy Sambidge
Fri 13 Jun 2014 01:54 AM

Dubai-based master developer Nakheel has confirmed a profit payment of AED220 million ($59.9 million) on its trade creditor sukuk.

The company, which overstretched itself during the emirate’s 2008 property crisis after building ambitious manmade island projects, said instructions have been sent to Deutsche Bank, the registrar and paying agent for the sukuk, to make the profit payment to all sukuk holders on the due date of June 15.

It added that it has issued AED4.4 billion in sukuk to date.

A Nakheel spokesman said: "We continue to honour our financial commitments and to implement our revised business plan, further helping the recovery of the real estate sector in Dubai. In turn, investor and contractor trust in Nakheel continues to grow."

Since its $16bn restructuring in 2011, Nakheel has paid around AED13 billion to contractors and suppliers; paid interest of AED1 billon to banks and made profit payments of around AED1 billion to sukuk holders.

Nakheel said it has also recommenced work on all 10 of its 'near term' projects, and delivered around 8,000 units to customers.

In April, Nakheel reported a 28 percent increase in first-quarter net profit.

The government-owned company made a net profit of AED629 million ($171.3 million) in the first three months of the year, up from AED491 million in the corresponding period of 2013.

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