Dubai-based developer Nakheel has issued a AED121m ($33m) sukuk to trade creditors as part of its debt restructuring deal.

The latest sukuk is the third tranche issued to the company’s trade creditors. It brings the total amount issued since the programme started in August 2011 to AED4.148bn.

Trade creditors were offered a cash payment from Nakheel of 40 per cent of what they were owed, with the rest in the form of a sukuk that pays 10 per cent coupon a year. In order to get the sukuk however, creditors had to settle their claims against the developer, often at much reduced sums to what they originally claimed they were owed.

Some creditors have still not reached agreement with Nakheel. “Additional sukuk payments are dependent on the conclusion of amicable settlements with remaining creditors,” says a company spokesman.

Many trade creditors have sold off their holdings of Nakheel debt in the secondary market.