Nakheel to revise payment of $750 mln sukuk

Dubai-based real estate developer Nakheel on Monday said it plans to revise the payment terms of its $750 million sukuk due in 2011 as the company faces financing difficulties amid a downturn in the local property market.

Under the revised terms, Nakheel would decrease the coupon payment due later this month and increase the final amount payable on the bond redemption date, according to a notice sent to investors by Deutsche Bank AG, the bond's principal paying agent and seen by news agency Zawya Dow Jones.

The next payment for the Islamic bond is due July 16 and the last is Jan. 16, 2011, according to the document.