The Canadian Press - ONLINE EDITION

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

  • Print

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.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Wasylycia-Leis wants to create aboriginal accord

View more like this

Photo Store Gallery

  • Goslings with some size head for cover Wednesday afternoon on Commerce Drive in Tuxedo Business Park - See Bryksa 30 Goose Challenge- Day 12- May 16, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • KEN GIGLIOTTI  WINNIPEG FREE PRESS / July 23 2009 - 090723 - Bart Kives story - Harry Lazarenko Annual River Bank Tour - receding water from summer rains and erosion  damage by flood  and ice  during spring flooding -  Red River , Lyndale Dr. damage to tree roots , river bank damage  , high water marks after 2009 Flood - POY

View More Gallery Photos

Poll

What should the legal drinking age be?

View Results

View Related Story

Ads by Google