Dubai developer Nakheel to pay $1.1B debt in 2014
DUBAI, United Arab Emirates (AP) — The indebted builder of Dubai’s palm-shaped islands says it plans to make early debt repayments of 4 billion dirhams, or $1.1 billion, this year.
Nakheel said in a statement Sunday that strong real estate growth and improved economic conditions in Dubai boosted its finances.
The company says it plans to pay another 3 billion dirham, or almost $817 million, in 2015 when the original first installment of 6.8 billion dirham was due.
The company owes $2.15 billion in bank debt and promises to repay trade creditors $1.23 billion in Islamic bonds that mature in 2016.
Nakheel’s credit problems were a key trigger of Dubai’s 2009 financial crisis, which prompted multibillion-dollar bailouts by the Abu Dhabi-based federal government.