Nakheel's $980 mln bond repayment funds with agent - source | Reuters

Property developer Nakheel NAKHD.UL has transferred $980 million to paying agent Deutsche Bank for the repayment of its Islamic bond due on Thursday, a source familiar with the matter said.

Nakheel, which is a subsidiary of indebted state-owned conglomerate Dubai World, is expected to meet its May 13 maturity even without formal agreement between creditors and Dubai World regarding its $24.8 billion restructuring plan.

Dubai's debt plan, which was unveiled on March 25, offers Nakheel sukuk holders full payment on 2010 and 2011 bonds on maturity while trade creditors will be repaid through a mix of 40 percent cash and 60 percent in a sukuk, with a 10 percent annual return.