New Islamic bonds from Nakheel will face a test today in a debt auction amid falling prices and rising yields since trading began two weeks ago.
The Dubai property giant is issuing the Islamic bonds, or sukuk, as part of a US$16 billion (Dh58.76bn) financial restructuring it began putting in place late last month.
The sukuk initially yielded about 13 to 15 per cent, well below what many observers expected. Yesterday, however, the security was yielding 16.37 per cent, according to a major bank trading the sukuk. But a bigger gauge of demand will come today when a group of banks has reportedly been invited to bid on Dh320 million worth of the sukuk.
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