Nakheel Says Paid $59.8m To Trade Creditor Sukuk

Dubai developer Nakheel has confirmed a profit payment of AED220mn ($59.8mn) 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 15 December against the sukuk issued amount of AED4.4bn to date.

Since its $16bn restructuring in 2011, Nakheel has paid around AED13bn to contractors and suppliers; paid interest of AED1bn to banks and made profit payments of around AED1bn to sukuk holders. Nakheel in July reported a 54% jump in profit for the first half of this year. The government-owned company made a net profit of AED1.85bn ($504mn) in the six months to 30 June, up from AED1.20bn in the corresponding period of 2013.

Originally published on www.constructionweekonline.com