Nakheel sukuk in July: report

Company is believed to have secured approval by all creditors

Nakheel properties is pushing ahead with plans to issue Dh4.8 billion sukuk (Islamic bonds) on schedule this month after securing approval for its debt restructuring by all lenders, a newspaper said on Saturday.

Quoting an unnamed senior source in Nakheel, the Sharjah-based Arabic language daily Alkhaleej said sukuk would be issued and managed by the German Deutsche Bank but they would initially not be listed.

The source told the paper that Nakheel, the real estate arm of the government-owned conglomerate Dubai World, had secured full agreement by all creditors to its plan to restructure $2.2 billion (Dh eight billion) debt.

“Now that Nakheel has secured approval by 100 per cent of the creditor banks to its five-year restructuring plan, the company has completed all conditions and procedures need for the issuance of Dh4.8 billion sukuk before the end of July.”

The paper quoted the source as saying the sukuk would not be initially listed at any party on the grounds Nakheel wants to “give a chance to all lenders to benefit from the bonds by either selling or mortgaging them.”

“This could be done in return for new credits…listing of the sukuk could then be done at a later stage,” the source said without elaborating.

In a report last month, Alkhaleej said Nakheel has no plans to change a 10 per cent profit rate on its sukuk following rumors that it intends to modify rates.

It quoted company sources as saying that 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.”

Nakheel Chairman Ali Rashid Lootah said last month 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 plans. The issue was postponed for late July because of a delay in agreement with some creditors.

 

Print
  • Twitter
  • submit to reddit
comments powered by Disqus
  • Rentals
  • Sales

Most Popular in Property

Videos

Follow
Emirates 24|7

Follow
Emirates 24|7
Pinterest Facebook Facebook Twitter RSS

Latest jobs available

More jobs on Emirates 24|7

In Case You Missed It ...