Nakheel offers lenders repayment after 4.5 years
Dubai, April 14, 2011
Dubai-based developer Nakheel, restructuring $10.9 billion in debt, has offered lenders repayment after four and a half years at a rate of 4 percent on a portion of its debt, sources familiar with the deal said.
The terms of the restructuring, covering mainly bilateral loans and a $1.85 billion syndicated Islamic loan due 2012, vary from the all-lender meeting in July which indicated repayment over five to seven years.
They relate to the syndicated loan, signed in 2007, which about 22 banks participated in, one of the sources said, and an agreement could be close. Nakheel said in March it hoped to conclude its restructuring by the end of the second-quarter.
Another source, at a creditor bank who has seen the terms sheet, said the same terms would apply across some of the other facilities under the restructuring.
'The terms should be pretty commercial. I think the way things are going, it’s pretty close to a resolution,' the source at one of Nakheel's lenders said.
'A document is currently under circulation. There are various facilities. But the tenor is 4.5 years on the facilities. The interest rate is LIBOR (London interbank lending rate) plus 4 per cent,' the source said, adding banks had come out on top.
Nakheel declined to comment when contacted by Reuters.
An agreement with trade creditors - expected to get 60 per cent repayment in the form of sukuk certificates carrying an interest rate of 10 per cent, and 40 per cent in cash - is also thought to be close.
'The restructuring agreements for trade creditors have been sent out at the end of March. Under the agreement, creditors must appoint a bank as custodian and that is currently being put in place,' said one source working closely with the creditors.
'The terms are pretty much as anticipated. They are just going over a few issues ... details.' Another source close to the sukuk issue said Nakheel will probably start to deliver its sukuk certificates by early May. – Reuters
More Construction & Real Estate Stories
- Emaar rules out plans for new tall tower
- Barwa net profit surges 27.3pc
- RAK Properties adds new villas to Flamingo project
- Saudi launches housing scheme to ease shortage
- R&M wins Oman residential project contract
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes
- $32m BFH car park work underway
- Bahrain awards $5.8m project tenders
- Spinneys to set up distribution centre at Kizad
- Dubai unveils $300m hitech 'green' city project
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract