Nakheel confirms talks to tap new funds

Having cleared all of its historical debts, Nakheel confirmed talks are on with banks to tap 'cheap' funds for its ongoing and future projects. But there is no intention to seek such funds through another sukuk or via a share offer. Nakheel is now completely off debts, having paid off Dh4.4 billion to trade creditors via a sukuk. It had in 2014 paid off Dh7.9 billion to its banking lenders, four years before they were due. Nakheel Chairman Ali Rashid Lootah said he is hopeful of netting a new funding agreement before the year end. The funds can come in handy with Nakheel’s existing roster of projects. This includes a mega-mall, with an estimated development cost of Dh4 billion plus.

Nakheel makes Dhs 220m sukuk profit payment

Dubai-based developer Nakheel confirmed that it made a profit payment of Dhs 220m on its trade creditor sukuk. The company said that it has instructed Deutsche Bank, the registrar and paying agent, to make the profit payment to all sukuk holders on the due date of December 15, 2015 against the sukuk issued amount of Dhs 4.4bn to date. Nakheel’s last profit payment on its Dhs 4.4bn sukuk was issued in June this year. The company posted a net profit of Dhs 3.61bn in the first nine months of 2015, up 39 per cent compared to Dhs 2.6bn in the same period last year. The developer has paid off debts worth Dhs 7.9bn and is continuing to make payments on its Dhs 4.4bn sukuk, which is due to mature in August 2016.

Nakheel rules out Sukuk and looks to bank debt

Nakheel has said that it will not sell Sukuk to fund its growth plans, in the hope that its recovery from the risk of default in 2009 will help it secure cheaper funding from banks. Chairman of Nakheel, Ali Rashed Lootah, said the firm will not go for a bond because bonds are more expensive than commercial lending from the banks actually. He considers Nakheel being in a strong position to negotiate with lenders, with banks, and get good terms especially after what they have achieved.

Dubai World prepays Dh1bn to creditors

Dubai World has prepaid $284.5 million (Dh1 billion) to creditors under its $25 billion debt restructuring plan. The conglomerate reportedly obtained money for the prepayment from asset sales. Under the terms of the restructuring deal, cash raised from asset sales above a threshold of $300 million is to be distributed as early repayments to creditors, which include big Western and Gulf banks. Last December, a unit of Dubai World sold its 50 percent stake in Miami Beach's landmark Fontainebleau hotel. The price was not disclosed, but Dubai World originally had paid $375 million for the stake in 2008. Moreover, Nakheel said last month it was repaying Dh2.35 billion ($640 million) of bank debt 18 months ahead of its maturity in September 2015.

Nakheel plans early repayment of bank debt

Nakheel plans to prepay in 2014 more than half of its bank debt of AED6.8 billion, originally due for repayment in September 2015. The company will pay AED2.35 billion in Q1 2014, and plans an additional prepayment of approximately AED1.65 billion in Q3 2014. Moreover, Nakheel plans to make additional payments of AED3 billion by Q3 2015. Other amounts will be paid ahead of the due dates. The trade creditor sukuk, due in August 2016, will be paid on time. The company says that a robust financial performance that has significantly exceeded its revised business plan, has led to improvements of approximately AED22 billion to date over the plan period. Over the past 28 months, since the successful completion of the financial restructuring, Nakheel has continued its focus on delivering the revised business plan and creating a long term sustainable business. Besides, Nakheel also launched new development projects to revive its core business activity of property development.

Nakheel pays US$53.7 million to lenders in compliance with restructuring terms

Nakheel has released interest and profit payments of AED197 million (US$53.7 million) to its lenders in compliance with its restructuring requirements. The company emphasized that it remains focused on meeting its commitments in accordance with the terms set out in its company restructure and revised business plan. Nakheel's commitment, achievements and newly-announced projects will continue to contribute to the growth of Dubai’s real estate and tourism sector, including the government target of 20 million annual visitors to Dubai by 2020.

Nakheel reports 57% jump in first half profit to US$327 million

Nakheel made a net profit of AED1.2 billion (US$327 million) in H1 2013, a 57% increase on a net profit of AED767 million reported for H1 2012. Revenues for H1 2013 stood at AED4.23 billion, up 36% on revenues of AED3.1 billion noted in H1 2012. The results for H1 2013 reflect the on-going support of the Government of Dubai and the commitment by Nakheel to delivering the post restructuring plan. They also demonstrate the continuing growth and strengthening of the real estate market in Dubai, and the return of investor confidence and trust in Nakheel and its projects. Besides several Nakheel projects under development, the company is evaluating a number of additional projects. Moreover, Nakheel focuses on meeting its restructuring commitments to its stakeholders by making interest payments to bank lenders and profit payments to its sukuk holders.

JPMorgan Touts Nakheels Sukuk Saying Default Doubtful: Islamic Finance

JPMorgan Chase & Co. is advising clients to buy Nakheel PJSC’s Islamic bonds as new projects boost the Dubai developer’s earnings, while government backing makes a default improbable. State-run Nakheel’s 4.27 billion dirhams ($1.2 billion) of sukuk yielded 9.88 percent at 12:30 p.m. in Dubai, down seven basis points this month, after surging 179 basis points in June. That’s more than twice the average gain in yields on corporate Islamic debt tracked by HSBC/Nasdaq Dubai indexes. JPMorgan listed Nakheel in a July 4 research note as its “top overweight recommendation” among Dubai real-estate debt. Nakheel will manage to pay or refinance as much as half of the $3 billion of debt due in 2016 as it generates at least $1 billion from new projects and land sales.

Nakheel sukuk yields jump with concern over debt refinancing

Nakheel's sukuk yields spiked yesterday, as the developer discusses its options on how to refinance its upcoming debt repayments. Yields for the developer on its Islamic bonds maturing in 2016 hit their highest level since November last year. Analysts said investors were responding to a lack of information over progress with the company's refinancing discussions with lenders. The recent sell-off may have hurt bond investors, but borrowing costs have returned to about the same levels as recently as nine months ago, meaning most issuers would have few difficulties selling new debt if they needed. Funds tracking the HSBC/Nasdaq Dubai UAE US dollar sukuk index have lost money this year, with total returns down 2.7 per cent year to date.

Dubai's Nakheel announces new USD32.66m sukuk issuance

Dubai's Nakheel announced that it issued a USD32.66 million sukuk as part of its restructuring plan. This is the property developer's fourth issuance which brings the total amount issued by the firm to USD1.16 billion. Since November 2009, Nakheel has paid nearly USD2.72 billion to different trade creditors and contractors. Nakheel's first tranche was issued in August 2011, and in January, the company issued a sukuk worth USD32.93 million. Nakheel is going through a USD16 billion restructuring plan.

Nakheel pays additional Dh206m to creditors

The real estate developer Nakheel on Tuesday announced that it paid an additional Dh206 million to its creditors as part of its debt restructuring. The funds, due to be paid at the end of February 2013 in accordance with the developer’s financial restructuring commitments, bring the total loan interest and trade creditor sukuk profit paid to Dh923 million since restructuring. According to Nakheel chairman Ali Rashid Lootah, The company is in a good financial position and has about $600 million of cash on its balance sheet.

Dubai's Nakheel in talks to extend $2.2 billion loan: report

Developer Nakheel is in talks to extend 8 billion dirhams ($2.18 billion) in loans due in 2015, according to its chairman Ali Rashid Lootah. The bank loans under consideration include 6.76 billion dirhams in secured facilities provided by, among others, Dubai's biggest bank Emirates NBD as well as 470 million dirhams in unsecured facilities, all due in 2016. Nakheel reported a 57-percent rise in annual profit in January. It also made interest and profit payments of around 800 million dirhams to lenders last year and has paid around 10 billion dirhams to various trade creditors and contractors since the start of its debt restructuring.

Nakheel mulls sukuk refi as analyst says sell

Nakheel may look to refinance its sukuk borrowings this year due to a reported growing of its 2012 profits. However, an analyst warned of wrong rating and pricing.

Chairman of Dubai's Nakheel denies report, says company can repay debts

Ali Rashid Lootah, the chairman of Dubai government-owned developer Nakheel, assured that his company is in a good financial position and has about $600 million of cash on its balance sheet. The comments followed a recent report from analysts at boutique investment bank Exotix that estimated Nakheel may have difficulties repaying a $1.1 billion Islamic bond and about $2 billion of bank debt due in 2016 with its own resources. Nakheel issued the Islamic bond, or sukuk, as part of its restructuring settlement. According to Mr. Lootah further sukuk shares will be issued.

Gains for Nakheel from rebound in property

Nakheel's bonds have brought their bondholders four times more returns than global peers this year. This year's return of the company's notes is 48%. Thus, the average gains of 11 per cent for the Bank of America Merrill Lynch Global Real Estate Index were surpassed by far. Compared to Nakheel, bonds of high-yielding American home builders registered an increase of 23%.

Nakheel creditors’ wise to sell off

About a year ago, Nakheel issued about AED4bn ($1.09bn) of sukuk to its trade creditors. Some holders were quick to offloaded them on the secondary market being impatient to finally settle their outstanding bills from the company. This led to a crash in the sukuk prices, which reached down to 70% of their value. However, there has been a recovery in prices since then, so that now the price on the secondary market is almost the same as the price when holding the bonds to maturity. In addition, there are annual 10% coupon payments. In spite of the risks associated with Nakheel, this makes the high coupon very appealing.

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Troubled developer Nakheel to start selling again on Dubai’s palm island

Dubai developer Nakheel wants to begin the selling of properties in its Palm Jumeirah project next month. These will be the first properties to be sold on the development since the property crash of 2008.
The Palm Residence project will test request for property in a market where prices have dropped more than 65% since their peak in the middle of 2008.
Most of the Palm project will be financed by off plan sales, meaning sales agreed before construction begins, a method that was common before the property slump and that has been criticised for being responsible for flipping and the price boom that led to the property crash.

Nakheel pays Dh202.2m to lenders

Nakheel released profit and interest payments equivalent to Dh202.2 million to its lenders. According to the restructuring commitments, the payments were due at the end of February 2012.
It appears that the timely discharge of the committed payments prooves the successful execution of the restructured operations by Nakheel.

Nakheel plans Sukuk to settle contractor claims

Developer Nakheel has negotiated contractor demand worth Dh1 billion so far and hopes to launch the second tranche of its Islamic bond within the next six months. This statement came from Ali Rashid Lootah, its chairman.

Nakheel pays Dh7.3 billion to its trade creditors

Nakheel made payments to the tune of ?Dh7.3 billion ($2 billion) to its trade creditors.
Nakheel will launch another Dh1 billion of sukuk before the end of this year as part of its Dh59 billion restructuring deal with trade creditors.
Under the company’s restructuring plan, the developer has presented trade creditors repayment of 40 per cent cash and the remaining 60 % in the form of sukuk.
Bank creditors will be offered an interest rate of four per cent over London Interbank Offered Rate (Libor) and repayment after five years.

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