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Bloomberg
Nakheel PJSC, the developer of Dubai’s palm-shaped islands, repaid an Islamic bond, bringing an end to a debt restructuring saga that pushed the emirate to the brink of default in 2009.
The Dubai government-owned company transferred funds to agent Deutsche Bank AG yesterday to cover a 4.4 billion-dirham ($1.2 billion) sukuk maturing this month, Chairman Ali Rashid Lootah told reporters at a press conference Monday in Dubai. The securities, which have a profit rate of 10 percent, were issued to contractors and suppliers in 2011 as part of a plan to reorganize more than $16 billion of liabilities. Dubai World, Nakheel’s former parent and one of the emirates’ three main holding companies, roiled global markets in November 2009 when it said it may halt payments on about $25 billion of debt.