Nakheel further delays Islamic bond
Dubai, August 5, 2011
Dubai World's property arm Nakheel said its planned Islamic bond, part of its $10.9 billion debt repayment proposal, has been delayed due to administrative reasons.
The developer, which overstretched itself with projects such as islands in the shape of palms, had been slated to issue the $1.63 billion Islamic bond, or sukuk, by the end of June.
Nakheel said on Thursday that it would issue the sukuk as soon as "practical". It did not specify a new time frame.
"It is taking longer than expected to close all the required steps to complete the administrative processes associated with the issuance of the sukuk," a Nakheel spokesman said in an emailed statement.
"Therefore as soon as it is practical, the sukuk will be issued."
The developer, which ran a parallel restructuring process to parent firm Dubai World , has offered trade creditors repayment of 40 percent cash and the remaining 60 percent in the form of a sukuk.
Once its restructuring is complete, Nakheel will be owned by the Dubai government. - Reuters