Dubai real estate developer Nakheel is currently seeking to borrow $1.4bn (AED5bn) from banks, according to market sources.
It might be its first attempt to raise sizeable debts since it almost collapsed at the turn of the decade.
Nakheel, who went into a debt crisis in Dubai in 2009 after a crash in real estate prices, is in talks with a small group of banks regarding the financing, Reuters reported.
The state-owned developer has asked banks to provide it with prospective pricing if it borrowed for eight- to 10-year terms.
The company declined to comment on the loan talks.
Nakheel will use the funds for construction projects, one of the sources told Reuters.
Nakheel was one of the developers worst hit by Dubai’s real estate crash at the turn of the decade. A drawn-out process led to it restructure debt worth nearly $16bn.
The property sector has since rebounded and Nakheel paid off its pre-crisis bank debt four years ahead of schedule.Â
The company is planning to develop 10 new hotels across Dubai and has signed a joint venture agreement with Spain’s RIU Hotels to open a hotel at Nakheel’s Deira Islands master development.Â
