Nakheel to pay down debt early
Developer to take advantage of stronger market to pay back $1.1bn
Dubai-based developer Nakheel plans to repay up to $1.1bn (AED4bn) of bank debt due in 2015 a year early, its chairman has said.
The company is taking advantage of the recovery in the property market to pay the debt early with a view to gaining better terms on the outstanding money owed.
The money is not due to be repaid until September 2015, but the company said in a statement that it will pay around $640m (AED2.35bn) during the first quarter of 2014, and a further $450m (AED1.65bn) during Q3.
Chairman Ali Rashid Lootah said that in 2011 the company had pledged to deliver 9,000 new units over a five-year period, and that it had already managed to complete more than 7,000 by the end of 2013. It has also repaid $3.3bn (AED12.3bn) to contractors, suppliers and trade creditors.
"The prepayment of a significant portion of bank debt is another major Nakheel initiative taken in proactively managing its financial affairs and in laying the foundation for a long term sustainable business," Lootah said in a statement.
"We expect to further reduce our debt burden in subsequent years to further improve the financial health of our business."