Font Size

- Aa +

Tue 28 Sep 2010 10:31 AM

Font Size

- Aa +

Nakheel plans $1.6bn bond, part of debt plan - report

UAE developer plans to issue a AED6bn Islamic bond as part of its debt repayment plan.

Nakheel plans $1.6bn bond, part of debt plan - report
REVAMP PLAN: Under Nakheels restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the remaing 60 percent through a sukuk.(Getty Images)

Developer Nakheel plans to issue a 6 billion dirhams ($1.63 billion) Islamic bond as part of its debt repayment plan, a UAE daily said on Tuesday, citing trade creditors to Nakheel.

Arabic language daily al Ittihad said the bond, or sukuk, would be listed on Nasdaq Dubai, citing executives at contracting companies.

A Nakheel spokeswoman declined to comment on the report. A Nasdaq Dubai spokesman also declined comment.

Under Nakheel's restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the remaing 60 percent through a sukuk.

Nakheel has said it has about 85 percent of acceptances, by value, for its debt restructuring and was "well on target to achieve its 95 percent acceptance of all payables and claims within the near future".

The company will proceed with the listing after it obtains a 95 percent agreement from creditors, the paper added.

Nakheel, the property arm of state-owned conglomerate Dubai World and undergoing parallel negotiations with its creditors, has yet to secure backing for its plan.

The developer expects to complete its debt restructuring by the end of the year, its chief executive said on Sept 23. (Reuters)

For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.