Dubai World has sold one of its UK assets as part of its efforts to repay creditors. A unit of Toronto-based investment company Brookfield Asset Management has bought logistics warehouse developer Gazeley from Dubai World subsidiary Economic Zones Worl…
After the request of Dubai World of six-month delay on payments on US$26 billion in debt in 2009, default became an extremely dirty word. Consequently, when this year Dana Gas failed to repay US$920 million on its sukuk, the local press was hesitant wh…
Banks and companies in the Arabian Gulf may issue the most Islamic debt in three years in the fourth quarter as economic growth accelerates and Dubai’s companies reach agreements to restructure debt. The combination of declining yields in emerging ma…
The GCC conventional bond market recorded a poor performance in the first quarter of 2010 amid Dubai-linked and broader sovereign debt fears, NCB Capital, the largest investment bank in Saudi Arabia and a subsidiary of National Commercial Bank, reporte…
Dubai property developer Nakheel’s trade creditors, unpaid for months, will be offered a hefty 10 percent return, a starting point for negotiations with trade creditors of the company, on a planned Islamic bond as Dubai tries to unblock a cycle of stalled bill payments to kick start its economy.
Dubai unveiled a $9.5 billion (6.1 billion pounds) rescue plan for Nakheel’s parent, state-owned Dubai World, last month, which calls for Nakheel’s trade creditors to get repayment of 40 percent in cash and 60 percent in a tradable security.
The offer is a generous one — especially in light of Dubai World’s opening offer to bank lenders of just one percent on two new tranches of debt maturing in five and eight years — and signals the trade creditors’ dominant position in debt talks.
The government is placing a great deal of importance on trade creditors because if they do not receive cash flow, it will put pressure on construction and real estate markets, which will affect workers at the firms and hurt the overall economy, he said.
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