Nakheel, the troubled Dubai-based property developer, is set to issue a AED4.8bn ($1.3bn) sukuk to trade creditors by 25 August. The five-year sukuk is a key part of Nakheel’s debt restructuring and will form the final part of paying off outstanding bills to trade creditors, who have already received 40 per cent of their bills in cash.
Distribution to the different creditors could take up to three months, according to Nakheel. Germany’s Deutsche Bank is acting as lead arranger on the deal. Nakheel had hoped to issue the sukuk before the end of 2010.