No change to Nakheel sukuk rate

Creditors will get 100% of their claims, says master developer

Nakheel properties has no plans to change a 10 per cent profit rate on its Dh4.8 billion sukuk (Islamic bonds) which it intends to issue towards the end of June, a newspaper said on Wednesday.

The Arabic language daily Al Khaleej quoted an unnamed responsible source in Nakheel as saying market reports about an imminent change in the profit rate were incorrect.

“These news are baseless…Nakheel is committed to all its promises to settle claims by creditors through sukuk issue with a profit rate of 10 per cent over a period of five years to be paid every six months,” the source told the paper.

“All creditors will get 100 per cent of their claims in line with the contracts signed with them….Nakheel is its doing its best to attain three goals until the end of next month - issuing Dh4.8 billion sukuk, reaching a final agreement with all lenders and completing its separation from Dubai World.”

In press comments this week, Nakheel Chairman Ali Rashid Lootah said the company would issue Dh4.8 billion sukuk at the end of June to pay nearly 60 per cent of its debt as part of overall restructuring.

He said the sukuk would be issued on time and there would be no delay as the company had taken measures to remove all obstacles for the settlement process.

Lootah said the sukuk would be guaranteed by land owned by Nakheel, the property arm of DW.

He noted that more than 90 per cent of the creditors, mostly contractors, had agreed on Nakheel’s debt restructuring plan, adding that approval by the remaining lenders is now “a matter of time.”

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