Nakheel achieves mission impossible and will be debt free from Thursday

Nakheel PJSC said today that it has repaid a AED 4.4bn ($1.2bn) Islamic bond, bringing an end to a debt restructuring process that started in 2009.

The company transferred funds to agent Deutsche Bank AG yesterday the full amount of the sukuk, which matures later this month, Chairman Ali Rashid Lootah told reporters in Dubai. The securities were issued to contractors and suppliers in 2011 as part of a plan to reorganize more than $16 billion of liabilities.

Nakheel has recovered in recent years by boosting recurring revenue from hotels and retail outlets as well as pressing ahead with developments on Palm Jumeirah island and other projects.

Lootah said the company achieved its business plan two years ahead of schedule and will be debt free on 25 August. Nakheel will award more than AED 8bn in construction contracts this year, he said.

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