Nakheel PJSC’s $3.52 billion bond rose to 54 cents on the dollar three days before Dubai’s state- controlled developer is due to repay the debt, according to Citigroup Inc. prices.
The Islamic bond maturing on Dec. 14 advanced 4.6 percent from its closing price of 51.63 cents yesterday, Citigroup prices as of 9:31 a.m. in London showed. The debt, known as sukuk, has dropped 51 percent since the Dubai government said on Nov. 25 that state-run holding company Dubai World, the parent of Nakheel, would seek to delay debt payments.
Nakheel, the developer of palm-tree shaped islands off the Dubai coast, had a first-half loss of 13.4 billion dirhams ($3.65 billion) as real-estate prices crashed in the Gulf business hub. Dubai World began talks last week with banks to restructure $26 billion of debt, including the Nakheel bond. BNP Paribas SA and EFG-Hermes Holding SAE analysts said Nakheel may repay bondholders up to 70 cents on the dollar and restructure the remainder of the debt by issuing new securities.
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