Dubai's Nakheel pays $60mn to sukuk holders
Firm says it has restarted work on all ten of its 'near term' projects
Dubai-based master developer Nakheel has confirmed a profit payment of AED220 million ($59.9 million) on its trade creditor sukuk.
The company, which overstretched itself during the emirate’s 2008 property crisis after building ambitious manmade island projects, said instructions have been sent to Deutsche Bank, the registrar and paying agent for the sukuk, to make the profit payment to all sukuk holders on the due date of June 15.
It added that it has issued around $1.2bn (AED4.4bn) in sukuk to date.
A Nakheel spokesman said: "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."
Since its $16bn restructuring in 2011, Nakheel has paid around $3.3bn (AED13bn) to contractors and suppliers; paid interest of $272mn (AED1bn) to banks and made profit payments of around $272mn (AED1bn) to sukuk holders.
Nakheel said it has also recommenced work on all 10 of its 'near term' projects, and delivered around 8,000 units to customers.
In April, Nakheel reported a 28% increase in first-quarter net profit.
The government-owned company made a net profit of $171.3mn (AED629mn) in the first three months of the year, up from $133.6mn (AED491mn) in the corresponding period of 2013.