Wednesday 12 May 2010

Dubai Shares Gain as Nakheel Says It Has Funds to Pay Bond

Dubai stocks rose for the second time this week after Nakheel PJSC said it received money from the emirate’s support fund to pay its Islamic bond maturing tomorrow.

Emaar Properties PJSC, a developer that helped kick-start Dubai’s property boom, climbed for the first time since May 10 and Arabtec Holding PJSC advanced for the second time this week, pushing the DFM Real Estate Index 1.1 percent higher. The DFM General Index rose 0.5 percent to 1,715.48. Nakheel’s floating- rate 3.6 billion dirhams ($980 million) Islamic bond due May 13 yesterday closed at 98.67 fils on the dirham. Abu Dhabi National Energy Co. gained to a two-week high after releasing earnings.

Nakheel, the unit of Dubai World that is restructuring $10.5 billion of debt, said yesterday the Dubai Financial Support Fund provided money for the full payment of the sukuk. The developer and Dubai World are renegotiating terms on $24.8 billion of liabilities after the global credit crisis led to a slump in property prices and made it harder to refinance debt.

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