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Tue 12 Jan 2010 10:56 AM

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Nakheel set to make $10.3m bond payment on Jan 19

Developer has a distribution payment due for trust certificates maturing in 2011.

Developer Nakheel is due to make a payment on a $750m Islamic bond next week just as its parent company Dubai World looks to submit a formal debt standstill request on $22bn of debt.

Nakheel has a $10.3m distribution payment due on January 19 for trust certificates maturing in 2011, it said on Tuesday in a filing on the Nasdaq Dubai.

Dubai World, which rocked global markets on November 25 when it announced it would seek the debt standstill, staved off a $4.1bn Islamic bond, or sukuk, default by Nakheel after Abu Dhabi issued a $10bn bond.

Dubai World is expected to soon make a formal standstill request to creditors for its debt while it devises a restructuring plan.

Nakheel has two bonds outstanding -- a AED3.6bn ($980m) issue maturing on May 13 and the $750m deal due January 2011. Neither is guaranteed by the government or Dubai World. (Reuters)

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