No date for second tranche of Nakheel sukuk

Company says work is progressing on settlement of contractor claims

Dubai-based Nakheel is continuing to settle contractor claims, but has not set any deadline for issuing the second tranche of its sukuk (Islamic bond) programme, Emirates 24|7 can reveal.

“Work is progressing well on contractor claims and settlements are being finalised in the normal course of the business,” a company spokesman told this website.

He added that the issuance of the next tranche of the sukuk is dependent upon how fast do the contractors settle and sign relevant documents.

The first tranche of Dh3.8 billion was issued in August, a day after the company announced completion of its Dh59 billion restructuring programme.

The second tranche has an estimated value of Dh1 billion. The sukuk is asset-backed and carries a coupon of 10 per cent.

Nakheel Chairman Ali Rashid Lootah confirmed last week the company was paying contractors and there were no issues pending on payments.

“Give me the names of the contractors who are not being paid… we are paying contractors,” he said.

Contractors, working on some of the Nakheel projects that have recently been restarted, confirmed to this website that they were having no issues in terms of receiving payments from the developer. 

“The problem was then when Nakheel was restructuring. Now we are paid on time. There is no problem in getting our money,” a senior executive of a top Dubai-based contracting firm said on conditions of anonymity.

Last year, trade creditors were offered repayment through a mix of 40 per cent cash and 60 per cent in the form of sukuk Nakheel expects to deliver 7,714 units across various projects by end of 2012 with plans to start construction on new villas on Palm Jumeirah by year-end.


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