Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Dubai’s Nakheel to pay $2.1 billion in debt early

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Aya Batrawy
Associated Press
Published:
DUBAI, United Arab Emirates ó Dubaiís developer Nakheel behind the famed man-made palm-shaped islands said Wednesday it is repaying 7.9 billion dirhams, or roughly $2.15 billion this month ó nearly four years before the last installment is due.
The indebted state developer was scheduled to repay the credit over three installments between September 2015 and March 2018. Nakheel said in a statement that it made early repayments of 2.35 billion dirhams ($640 million) in February. The remaining 5.54 billion dirhams ($1.51 billion) is being paid and cleared this month, it said.
Nakheel will pay the $1.51 billion to 31 banks, of which almost $940 million will go to UAE banks and $570 million to overseas banks. The company said it will also pay interest of around $35 million covering the six months from end of February to end of August.
The companyís credit-fueled building spree was at the heart of Dubaiís financial crisis in 2009 following a property market crash the year before. The state developer was part of Dubai World, but separated during financial restructuring.
It received a multi-billion dollar bailout from the Dubai government, which itself was lent billions of dollars from the Abu Dhabi-based federal government. Nakheel was almost faced with default and had to suspend its projects on its large man-made islands.
Nakheel said earlier this year that strong real estate growth and improved economic conditions in Dubai boosted its finances and allowed it to make early debt repayments.
It has also promised to repay trade creditors $1.23 billion in Islamic bonds, known as sukuk, that mature in 2016.

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup