Nakheel sukuk may soon be listed on Nasdaq Dubai

The tradeable sukuk promised to Nakheel creditors may be listed on Nasdaq Dubai before the end of this year.

"Most likely it will be done before the end of the year," said Zaid Makhzoumi, chief financial officer of Arabtec.

"After getting the creditors' approval, the next step is to quantify that amount. My understanding is that they have already applied to Nasdaq Dubai, the only place where they can list the bond."

When contacted by this website, a Nakheel spokesperson declined comment at this stage.

Under Nakheel’s complex restructuring plan, first unveiled a few months ago, trade creditors have been offered 40 per cent of what they are owed in cash and the rest through an Islamic bond, or sukuk.

Last month, Nakheel said it had settled Dh2.5 billion of the Dh4 billion it owes to trade creditors.
Earlier this month, Dubai World, Nakheel’s parent and one of Dubai’s three main holding companies, said it secured approval from creditors to change the terms on $24.9 billion of debt.

"We have received the 40 per cent payment like everybody in July in addition to the half a million tranche we received in May," Makhzoumi said.

"Now we are waiting for the bonds."

Trade creditors who were owed more than Dh500, 000 were offered full repayment by the developer with 40 per cent in cash and 60 per cent via an Islamic bond, which has a 10 per cent annual return. The move follows initial payments to trade creditors owed Dh500,000 or less which began in March.

Makhzoumi says Nakheel by now knows the total amount of debt to be paid in sukuk.

He did not say how much is due to Arabtec but said the sukuk is expected to be attractive in investors point of view.

He dismissed talks that Dubai would be one of the major buyers.

"Why would Dubai buy it? They will issue a bond because they don't have cash," he said. "There will be a lot of people interested in buying it because of the 10 per cent profits, which is generous."

In the meantime, he said Arabtec currently has no needs to raise more funds. "We don't see the need," he said.

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