Dubai’s Nakheel Says Paid $59.8m To Trade Creditor Sukuk

Dubai developer Nakheel on Thursday confirmed a profit payment of AED220 million ($59.8 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.

Nakheel said in a statement that it has told the bank to make the profit payment to all sukuk holders on the due date of December 15 against the sukuk issued amount of AED4.4 billion to date.

Since its $16bn restructuring in 2011, Nakheel has paid around AED13 billion to contractors and suppliers; paid interest of AED1 billon to banks and made profit payments of around AED1 billion to sukuk holders. Nakheel in July reported a 54 percent jump in profit for the first half of this year.

The government-owned company made a net profit of AED1.85 billion ($504 million) in the six months to June 30, up from AED1.20 billion in the corresponding period of 2013.

Originally published on www.arabianbusiness.com