Nakheel in talks with Nasdaq Dubai to list sukuk

Nakheel, the developer of palm shaped islands off Dubai’s coast, is in preliminary talks with Nasdaq Dubai to list Islamic bonds and is confident of reaching an accord with its creditors by the year end, its chairman said.

Speaking to reporters in Dubai on Sunday, Ali Rashed Lootah said: “We are in the final stages of negotiation and we are confident we will reach an agreement."

Lootah said a “good percentage” of bank creditors have agreed to the company’s plan to alter the terms on more than $10 billion of debt and contractor claims.

The developer, which appointed an independent consultant to start evaluating claims by trade creditors, said it paid trade creditors 3.4 billion dirhams ($930 million) as the company restarts work on stalled projects across the emirate.

Nakheel plans to pay creditors 40 percent in cash with the rest through a tradable Islamic bond, known as sukuk.

Dubai World, Nakheel’s parent and one of the emirate’s three main holding companies, last month said it secured approval from creditors to change the terms on $24.9 billion of debt.

Nakheel said 85 percent of its creditors have agreed to the restructuring terms. The company expects to receive approvals from 95 percent of lenders before the year end.

Nakheel also plans to build community centers in several developments including the Palm Jumeirah and may build extensions to the Dragonmart and Ibn Battuta malls as early as next year, Lootah said, without specifying the amount of retail space the company is planning to build.

He said: “We have to enhance Nakheel financially and look for new cash. This is the best option to have fresh cash."