Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Dubai's state developer Nakheel to pay $2.1 billion in debt 4 years ahead of final due date

FILE - In this file photo taken Monday Oct. 5, 2009, a visitor looks at the Palm Jumeirah model at the Nakheel stand at the Cityscape exhibition in Dubai, United Arab Emirates. Dubai's developer Nakheel behind the famed man-made palm-shaped islands said Wednesday, Aug. 20, 2014, that it is repaying 7.9 billion dirhams, or roughly $2.15 billion this month - nearly four years before the last installment is due. (AP Photo/Kamran Jebreili, File)

Enlarge Image

FILE - In this file photo taken Monday Oct. 5, 2009, a visitor looks at the Palm Jumeirah model at the Nakheel stand at the Cityscape exhibition in Dubai, United Arab Emirates. Dubai's developer Nakheel behind the famed man-made palm-shaped islands said Wednesday, Aug. 20, 2014, that it is repaying 7.9 billion dirhams, or roughly $2.15 billion this month - nearly four years before the last installment is due. (AP Photo/Kamran Jebreili, File)

DUBAI, United Arab Emirates - Dubai's 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 — 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 company's credit-fueled building spree was at the heart of Dubai's 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.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates