Nakheel further delays bond due to administrative issues

Nakheel further delays bond due to administrative issues

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.

August 4, 2011 10:28 by Eva Fernandes

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.

(Reporting by Praveen Menon; Editing by Amran Abocar)

Image taken from- http://www.ibnjuferi.com/sukuk-simpanan-rakyat/