Dubai's Nakheel to issue $1.6 bln bond end Jan -report

Dubai’s Nakheel to issue $1.6 bln bond end Jan -report

Nakheel reportedly has 85 percent of acceptances by value for its debt restructuring.

December 16, 2010 4:11 by Reuters

Troubled Dubai developer Nakheel plans to issue a 6 billion dirham ($1.63 billion) Islamic bond, part of its restructuring plan, to trade creditors at the end of January, its chairman was reported as saying.

“We are confident that we can close the file during the coming 45 days,” Arabic daily al Bayan quoted Ali Rashid Lootah as saying on Thursday.

Nakheel has 85 percent of acceptances by value for its debt restructuring.

“The remaining 10 percent should not be hard to get on board,” Lootah added.

Under the developer’s restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the remaining 60 percent through a sukuk.

Nakheel’s chairman said in October he was confident the restructuring would be completed by year end.

Faisal Mikou, Executive Vice President of the Investment Corporation of Dubai (ICD) said last month Nakheel would issue the bond in the first quarter.

(Reporting by Jason Benham; Editing by Shaheen Pasha)