Nakheel to issue USD1.3b sukuk

23 May 2011

(MENAFN) Nakheel’s chairman, Ali Rashid Lootah, said that at the end of June, the company would issue USD1.3 billion Sukuk (Islamic bonds) in order to pay back around sixty percent of its debt as part of general restructuring that would involve its separation from Dubai World (DW), the state owned conglomerate, reported Emirates 24/7.

Lootah added that the sukuk would be issued against guarantees from land owned by the company and they would be issued on time since the company made actions to remove obstacles that would delay the settlement process.

He also said that more than 90 percent of the creditors, mainly contractors, agreed on the company’s debt restructuring plan, and that approval by the remaining lenders would be a matter of time, adding that one of the major property developers in the region was able to lower claims by the contractors from around USD2.7 billion to USD2.1 billion.

It is worth noting that according to Lootah, claims made by the contractors were highly exaggerated, and some of them had agreed to renegotiate claims and payment.

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