Aug 10 (Reuters) – Developer Nakheel, Dubai World’s property arm, will issue a $1.63 billion Islamic bond to trade creditors by August 25, its chairman was quoted as saying in a local newspaper reported on Wednesday.
Ali Rashid Lootah also said Deutsche Bank would manage the process, which will take place over two to three months in the remarks to Arabic language daily al-Khaleej.
The developer, which ran a parallel $10.9 billion restructuring process to parent Dubai World, has offered trade creditors repayment of 40 percent cash and the remaining 60 percent in the form of an Islamic bond, or sukuk.
Lootah said the firm, which overstretched itself with projects such as islands in the shape of palms, has completed all administrative and accounting measures related to the sukuk’s issuance.
The sukuk was delayed from June, with the company citing administrative issues