Dubai's Nakheel says to repay $1.5bn debt

Payments are four years ahead of schedule and will be funded from state-owned developer's own resources
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By Reuters
Wed 25 Jun 2014 11:50 AM

Dubai property developer Nakheel will repay all its outstanding debt to banks by August this year, four years ahead of the schedule mandated by its restructuring plan, the state-run company's chairman said on Wednesday.

The repayments will total AED5.54bn ($1.5bn), and will be funded from Nakheel's own resources rather than support from the Dubai government, Ali Rashid Lootah told a news conference.

In February, Nakheel said it had initiated early repayment of AED2.35bn of bank debt 18 months ahead of maturity in September 2015.

Nakheel was a casualty of Dubai's 2008-2009 property market crash, pushing it close to default and forcing it to restructure its debt. But its prospects have improved over the past two years with a strong recovery of Dubai's real estate market.

In April, the company reported a 28 percent year-on-year increase in first-quarter net profit to AED629m, on revenues of AED1.37bn.

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