Holders of the Nakheel sukuk, which matures tomorrow, are braced for a decision by Dubai that could see them be offered less than the value of their investments in the US$3.5 billion (Dh12.85bn) issue.
And a senior banker has warned that Dubai faces harsher credit terms and a possible liquidity squeeze if its financial problems are not resolved.
Advisers to Dubai World, the conglomerate that owns Nakheel, still say it is possible that the sukuk could be repaid in full, as one of a series of options senior government officials are considering. With the profits due to bondholders, the total owed by Nakheel is more than $4bn.
Interestingly enough the amount owed by Nakheel is slightly less than the total of all credit it has extended to the Group - including some AED 9 billion in short term loans to Dubai World.
ReplyDeleteDear Abu,
ReplyDeleteI have also questioned this, since the disclosure on NASDAQ Dubai, however journalists have been busy elsewhere!
Today has changed the landscape, with Abu Dhabi's involvement, now to see statement comments applied: http://www.reuters.com/article/idUSLDE5BD01A20091214?type=marketsNews