Developer Nakheel's proposed bond sale to trade creditors may see its price fall initially as smaller contractors could sell to shore up their cash position, a top executive at Dubai builder Arabtec said.
Nakheel plans to issue a AED6 billion (US$1.63 billion) Islamic bond as part of its debt repayment plan.
"My view is the smaller bondholders... will probably sell it as it will make a big difference to the cash flow and this will force the price probably initially to dip," Arabtec's Chief Financial Officer Ziad Makhzoumi said at the Reuters Middle East Investment Summit in Dubai on Monday.
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