Friday, 12 August 2022

#Dubai Palm-Island Developer Nakheel Plans to Raise $4.6 Billion Loan - Bloomberg

Dubai Palm-Island Developer Nakheel Plans to Raise $4.6 Billion Loan - Bloomberg

Nakheel PJSC, the developer of Dubai’s artificial palm-shaped islands, plans to raise a loan of about 17 billion dirhams ($4.6 billion) to refinance existing debt, according to people familiar with the matter.

The company is seeking the financing from a group of lenders including Dubai Islamic Bank PJSC, Emirates NBD PJSC and Mashreqbank PSC, the people said, asking not to be identified because the information is private. The banks arranging the loan are also asking global and regional lenders to participate in the deal, they said.

Nakheel was at the center of a property crash in 2009 that nearly bankrupted the emirate. After receiving support from the government, the firm worked on prime projects across Dubai until once again coming under pressure from a drop in real estate prices in 2014.

Nakheel has since consolidated operations and cut costs, and its plans to raise funds coincide with a resurgence in Dubai’s real estate market after a years-long slump. Prices have surged in the city, which became a haven for the wealthy escaping coronavirus lockdowns. A downturn that shaved more than a third off property values has also been a draw for global investors.

A representative for Nakheel declined to comment. Representatives of Dubai Islamic Bank, Emirates NBD and Mashreqbank didn’t immediately respond to requests for comment.

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