FINANCIAL NEWS

No date set for second Sukuk tranche: Nakheel

05 Dec 2011

(MENAFN) Nakheel, the Dubai-based real estate developer, said that the firm didn’t decide when to issue the second tranche of its Islamic bond program (Sukuk), reported Emirates 24/7.

The firm added that its first tranche of USD1 billion was issued in August, following the announcement of the completion of the firm’s USD16 billion restructuring program, however, the issuance of the second tranche of sukuk would depend on how fast the contractors settle and ink relevant documents .

It also said that in 2010, trade creditors were offered repayment through a mix of 40 percent cash and 60 percent in the form of sukuk, on the other hand, contractors working on some of Nakheel’s projects that were restarted recently showed that they had no issues in terms of receiving payments from the company.

It is worth noting that Nakheel’s second tranche has an estimated value of USD272 million.

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