Payment forms part of Dubai developer Nakheels debt restructuring plan
Dubai-based property developer Nakheel has made a profit payment of AED218m ($59m) on its trade creditor sukuk (Islamic bond).
The company has sent instructions to Deutsche Bank, the registrar and paying agent, to make the profit payment to all sukuk holders on the due date of 15 December.
Nakheel had issued a total of AED4.4bn sukuk as part of a debt restructuring plan to pay off trade creditors.
The fourth and final tranche of the sukuk programme, worth AED120m, was issued in March.
Nakheel last announced a profit payment to trade creditors in June, when it paid out AED210m to sukuk holders.
We continue to honour our financial commitments and to implement our revised business plan, further helping the recovery of the real estate sector in Dubai. In turn, investor and contractor trust in Nakheel continues to grow. said a Nakheel spokesperson, commenting on the latest payment.
Under the terms of the companys debt restructuring, trade creditors had been 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. To recieve 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.
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