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Date: 29/09/2010
$1.6b Bond Part Of Nakheel Plans

Property developer Nakheel plans to issue a Dh6 billion ($1.63 billion) Islamic bond as part of its debt repayment plan as it restarts several key projects, an industry executive said on Tuesday.

Under Nakheel's restructuring plan, trade creditors have been offered 40 per cent of what they are owed in cash and the remaining 60 per cent through a sukuk Islamic bond.

"We have been expecting Nakheel to issue the sukuk, which would be around Dh6 billion, before the end of the year," Ahmad Saif Bel Hasa, chairman of the UAE Contractors Association said.

Dubai contractor Arabtec's chief financial officer Ziad Makhzoumi said Nakheel had applied for listing on Nasdaq Dubai, the Arabic language daily Al Ittihad reported earlier yesterday.

"The only place for a bond to be listed in Dubai is on Nasdaq Dubai," Makhzoumi said. A Nakheel spokeswoman declined to comment on the report.

A Nasdaq Dubai spokesman also declined comment.

Nakheel has said it has about 85 per cent of acceptances, by value, for its debt restructuring. The property developer said it was "well on target to achieve its 95 per cent acceptance of all payables and claims within the near future".


The company will proceed with the listing after it obtains a 95 per cent agreement from creditors, Al Ittihad said on Tuesday.

Nakheel, the property arm of state-owned conglomerate Dubai World and undergoing parallel negotiations with its creditors, has yet to secure backing for its plan.

The developer expects to complete its debt restructuring by the end of the year, its chief executive said last Thursday.