Nakheel delays $1.63bn bond

Dubai World's property arm Nakheel said its planned Islamic bond, part of its $10.9 billion debt repayment proposal, has been delayed due to administrative reasons.

The developer had been slated to issue the $1.63 billion Islamic bond, or sukuk, by the end of June.

Nakheel said on Thursday that it would issue the sukuk as soon as "practical". It did not specify a new time frame.

"It is taking longer than expected to close all the required steps to complete the administrative processes associated with the issuance of the sukuk," a Nakheel spokesman said in an emailed statement.

"Therefore as soon as it is practical, the sukuk will be issued."

The developer, which ran a parallel restructuring process to parent firm Dubai World, has offered trade creditors repayment of 40 per cent cash and the remaining 60 per cent in the form of a sukuk.

Once its restructuring is complete, Nakheel will be owned by the Dubai government.