Dubai's Nakheel says to pay $59.8m to trade creditor sukuk

Developer says it has issued instructions to Deutsche Bank to make profit payment on due date of Dec 15
Dubai's Nakheel says to pay $59.8m to trade creditor sukuk
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By Staff writer
Mon 14 Dec 2015 03:19 PM

Dubai developer Nakheel on Monday said it paid out a profit payment of AED220 million ($59.8 million) on its trade creditor sukuk, following a similar payment in June.

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.

Nakheel said in a statement that it has told the bank to make the profit payment to all sukuk holders on the due date of December 15 against the sukuk issued amount of AED4.4 billion to date.

In July, Nakheel announced a net profit of AED2.83 billion ($770 million) for the first six months of 2015, an increase of nearly AED1 billion - or 53 percent - on the same period last year.

The builder behind Palm Jumeirah said the sharp increase is mainly due to continued strong performance by its development business, with ongoing handovers of properties to customers.

The company's growing retail, leasing and leisure businesses also contributed to the overall financial results for H1 2015, said Nakheel.

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