Tuesday 13 September 2011

Market for Nakheel's sukuk hit by uncertainty - The National

Deep concern about the health of Nakheel's business has slowed the development of a market for the Dubai property giant's Islamic bonds, traders say.

Nakheel issued a first tranche of the Islamic bonds, or sukuk, to unpaid contractors last month. They are a key part of the company's restructuring.

In a prospectus attached to the sukuk, Nakheel revealed that it wrote down the value of its property and project portfolio by almost Dh74 billion (US$20.14bn) in 2009 as its fortunes flagged. The company also said it changed tactics in response to the financial crisis, forging ahead with a selection of its projects and putting others on hold.

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