Dubai's Nakheel seeks suspension $5.25 bn in bonds
Published on Mon, Nov 30, 2009 at 12:36 | Source : Reuters
Updated at Mon, Nov 30, 2009 at 15:28
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Dubai's Nakheel seeks suspension $5.25 bn in bonds
Dubai's Nakheel, one of two flagship companies behind the emirate's rapid growth, said on Monday it had asked for three of its listed Islamic bonds worth USD 5.25 billion to be suspended from trade until it can inform the market more fully about its restructuring plans.
Dubai's Nakheel, one of two flagship companies behind the emirate's rapid growth, said on Monday it had asked for three of its listed Islamic bonds worth USD 5.25 billion to be suspended from trade until it can inform the market more fully about its restructuring plans.
Nakheel, along with Dubai World, announced last week that they would seek debt standstill agreements from creditors until May 2010, briefly sparking fears of another global financial market crisis.
Nakheel, developer of a series of man-made islands in the shape of palm trees off Dubai's coast, said in a statement that it had asked the Nasdaq Dubai exchange to suspend all three of its listed Islamic bonds, or sukuk, "until it is in a position to fully inform the market".
The three instruments listed on the exchange are its USD 3.5 billion sukuk due on December 14, its 3.6 billion dirham sukuk (USD 980.1 million) due on May 13 and a USD 750 million sukuk due on January 16, 2011.
Nakheel's first bond, the USD 3.5 billion sukuk, was widely expected by the market to be repaid on time.
The United Arab Emirates on Sunday offered the region's banks emergency support and Abu Dhabi said it would provide selective support to Dubai companies.
