gulfnews : Trade creditors keen to sell Nakheel bonds

Trade creditors holding the recently issued first tranche of developer Nakheel's five-year Islamic bonds, or sukuk, are inviting bids for the paper, but buyers are so far limited, traders said.

The $1.03 billion (Dh3.78 billion) issue, the first instalment of a total $1.31 billion offered as part of a restructuring deal to repay trade creditors, was issued at the end of August, and offers a profit rate of 10 per cent.

Two market sources told Reuters that investment bank Morgan Stanley was holding an auction for Dh320 million of bonds offered by an undisclosed seller.

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