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Thu 12 Dec 2013 01:42 PM

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Dubai's Nakheel pays $59m to trade creditor sukuk

Developer says it has issued instructions to make profit payment on due date of Dec 15

Dubai's Nakheel pays $59m to trade creditor sukuk
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Dubai's Nakheel on Thursday confirmed a profit payment of AED218m ($59.3m) on its trade creditor sukuk.

The developer, 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 December 15.

It added that it has issued AED4.3bn 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 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.

In October, Nakheel said its nine-month net profit jumped 58 percent year-on-year as the company continued to benefit from the recovery in the emirate's property market.

The firm, which was taken over by the government as part of its $16bn restructuring plan completed in 2011, made a net profit of AED1.77bn ($481.9m) in the nine months to September 30, versus AED1.12bn in the corresponding period of 2012.

Dubai real estate prices slumped by more than 50 percent from their 2008 peak in the aftermath of the emirate's property bubble bursting, but have been advancing in recent months as investor confidence in the sector returns.

* Nakheel no longer responds to media enquiries from Arabian Business, nor does it grant Arabian Business access to any of its media events or announcements.

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