Dubai's Nakheel makes $57m sukuk profit payment

Government-owned property firm says it has issued AED4.3bn in sukuk to date
Dubai's Nakheel makes $57m sukuk profit payment
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By Daniel Shane
Thu 13 Jun 2013 09:26 AM

Dubai property developer Nakheel has announced that it has made a profit payment of AED210m ($57.1m) against its trade creditor sukuk.

The firm, which overstretched itself during the emirate’s 2008 property crisis after building ambitious manmade island projects, said instructions had been sent to paying agent Deutsche Bank to make payment to holders of its Islamic bond on the June 15 due date.

Nakheel, which was taken over by the Dubai government in 2011, has issued AED4.3bn in sukuk to date.

“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,” a spokesperson for the company said in a statement.

Since its $16bn restructuring two years ago, Nakheel has paid over AED1.3bn in loan interest and sukuk profit payments and made cash payments of around AED11bn to trade creditors and contractors.

Nakheel reported a 36 percent rise in first-quarter net profit, boosted by delivery of long-delayed units to customers.

The state-owned property firm posted a profit of AED491m ($133.4m) in the quarter compared to a profit of AED362m in the corresponding period in 2012.

Revenue for the first quarter was AED2.2bn, up 62 percent from a year earlier.

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