(Reuters) – Property developer Nakheel NAKHD.UL will issue its long-delayed 4.8 billion dirhams ($1.3 billion) Islamic bond this week as it launches a five-year restructuring plan on Wednesday, its chairman told a local newspaper.
The restructuring plan will begin as the company reached agreements with financial and trade creditors, Chairman Ali Rashid Lootah was quoted as saying in the Arabic daily al-Khaleej newspaper.
“Nakheel will issue sukuk worth 4.8 billion dirhams to qualified trade creditors who have signed restructuring agreements to guarantee all of its owned properties,” he said, adding that Dubai Land and the Property Department had completed the evaluation of all land owned by Nakheel.
Nakheel, builder of man-made islands in the shape of palms, was at the center of Dubai’s crippling 2009 debt crisis after a property bust brought the firm to its knees.
Lootah also said that the company succeeded in obtaining the approval of 100 percent of creditors for the final restructuring plan.
He said the sukuk would be issued in one stage but that the distribution process may take between two to three months. Deutsche Bank (DBKGn.DE) was mandated as the lead manager for the issue.
The developer, which over stretched 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.
(Reporting by Martina Fuchs, Editing by Dinesh Nair)