IslamicFinance.de

Nakheel revealed the fact that he wants to construct 102 beachfront townhouses on the Palm Jumeirah, and at the same time the company exposed that the value of its sukuk is undervalued on the marketplace.
Rashid Ali, Nakheel’s chairman, stated that its aim is to have the same as last year. He also added that Nakheel is confident of delivering new projects over the next few years.
Although Nakheel has successfully completed its financial restructuring, it is aspiring to extend its retail business and increase community services such as the expansion of Dragon Mart Mall and the construction of two new Neighborhood Community Centers.

Most of the land backing a $1.03bn sukuk bond from Dubai property developer Nakheel is unreclaimed seabed, assigning trade creditors holding the paper with scant recourse to tangible assets in the event of a default.
The sukuk is part of Nakheel's $16bn debt restructuring deal which gives trade creditors 40 % in cash and 60 percent via the bond back.
The sukuk prospectus does not sketch out the assets assigned to support the sukuk but a term sheet distributed to creditors details the area.

Nakheel brought upon itself impairments of 73.8 billion dirhams in 2009, primarily related to the carrying value of assets and capital work in progress.
I seems that after just finishing a complex debt restructuring last month, the company devalued up to 78.6 billion dirhams ($21.4 billion) of its real estate assets due to a property crisis in the emirate.
The Dubai government along with another debt ridden property firm Limitless will control from now on the comapny.

Nakheel has pushed the issuance of AED1bn ($272m) of Islamic bonds to its trade contractors after bank account details of some of its creditors were found to be defective.
The developer has inquired the 30 trade creditors to resubmit their account details to continue with the second AED1bn tranche.
Nakheel offered creditors repayment of 40 % cash and the remaining 60 % in the form of an Islamic bond, or sukuk, at a profit rate of 10 %.

Nakheel launched the Dh3.8 billion (US$1.03bn) Islamic bond as a part of its financial restructuring. Through this the company is underscoring investors' continued doubts about the embattled property giant's finances.
Ahmad Alanani is a senior executive officer in the fixed-income department of Exotix in Dubai. He states that retail buyers were taking shares from contractors at about 84 cents on the dollar, sending yields skywards. He predicts prices of 70 to 80 cents on the dollar in the future.

Nakheel announced that its planned Islamic bond has been delayed because of administrative reasons.
The developer overstretched itself with projects such as islands in the shape of palms. That is why the $1.63bn Islamic bond had been slated to issue.
Nakheel stated that it will launch the sukuk as soon as it will proove itself to be practical.

Nakheel stated that it has paid AED5bn ($1.36bn) in overdue payments to its trade creditors.
Through the restructuring proposal trade creditors will receive repayment through 40 percent cash and 60 percent in the form of an Islamic bond, or sukuk.

Nakheel has made payments of Dh4.6 billion to its trade creditors so far. The statement also announced that the property developer is expecting to finalise its restructuring before the end of first half of 2011.

The threshold limit required by Nakheel, the Dubai-based master Developer, to implement its restructuring proposal has almost been reached.
Under Nakheel's restructuring proposal, trade creditors will receive repayment through 40 per cent cash and 60 per cent in the form of a sukuk (Islamic bond).
Nakheel said the debt restructuring process is expected to be completed by the first half of 2011 and it will soon be issuing restructuring agreements, including a term sheet for an Islamic bond offering, to trade creditors who have signed on to its restructuring plan.

Nakheel expects its $10.9 billion debt restructuring process to be completed by the first half of 2011.
It said it will soon issue restructuring agreements, including a term sheet for an Islamic bond offering, to trade creditors that have signed on to its restructuring plan.
Under Nakheel's restructuring proposal, trade creditors will receive repayment through 40 per cent cash and 60 per cent in the form of an Islamic bond, or sukuk.

Nakheel repaid its $750 million Islamic bond, or sukuk, that matured on Jan. 16, after securing sufficient funds from the Dubai Financial Support Fund in December.
The Dubai Financial Support Fund was set up last year to distribute funds to struggling government-related entities via a $20 billion sovereign bond program.
Nakheel is seen to be at the center of the financial problems that have plagued its parent Dubai World.

Nakheel, the real-estate unit of Dubai government-owned conglomerate Dubai World, said the Dubai Financial Support Fund has given it enough money to repay its $750 million Islamic bond, or Sukuk, that matures on Jan. 16.

The company stopped paying contractors when the emirate's property bubble burst last year and Nakheel's credit-driven expansion ground to a halt. It reached an agreement earlier this year with its banks to delay repayment of $24.9bn of debt for between five and eight years.
Nakheel's Islamic bond, or sukuk, was announced in April. The developer is to pay 60 per cent of large claims by contractors and other trade creditors with sukuk shares and the remainder in cash.

The chief executive of the Association of Consultancy and Engineering (ACE) has warned companies to write off “sukuk” bonds from indebted Dubai developer Nakheel.
Nakheel is finalising a plan to pay creditors 40% in cash up front, and 60% in sukuk bonds, which are redeemable in five years and pay a return of 10% a year.
Nakheel chief executive Chris O’Donnell told conference delegates, many of whom are still owed money, that the developer would reach an agreement on the plan with creditors before the end of the year, after which the sukuk would be issued.

The Government of Dubai announced that, with the backing of the Emirate of Abu Dhabi (AA/Stable/A-1+), it would be providing US$10 billion in financing to Dubai World and its subsidiaries, through its financial support fund.

The government of Abu Dhabi and the Central Bank of the UAE has announced that it has agreed to provide $10 billion to the Dubai Financial Support Fund.

The Dubai Financial Support Fund can therefore enable Nakheel to pay its Sukuk due today.

Nakheel Development Limited announced via the exchange, Nasdaq Dubai that it aims to repay the Sukuk in the next two weeks. According to the statement it will use funds that will be provided by the Dubai Financial Support Fund.

Dear Readers,

some background on the standstill:

Sukuk prospectus of the related Nakheel entity:
http://blogs.thenational.ae/economy_blog/Nakheel%20Development%201%20Pro...

citation:
"Risks Relating to the Co-Obligors and the Co-Obligor Group Strategy

The growth strategy of the Co-Obligor Group is based on certain assumptions relating to, inter alia,
economic conditions, market for real estate and demographic conditions in Dubai. [...] This could, for example, have an impact on the rental income, sales proceeds or other income (such as management fees) available to the Co-Obligor Group and the value of its projects, which could affect its ability to make payments under he Transaction Documents."

and the issue of implicit sovereign support was nicely discussed in a blog:
http://blogs.thenational.ae/economy_blog/2009/08/nakheels-bond-prospectu...

The rational behind is explained by a rating agency here in 2007:
http://www2.standardandpoors.com/spf/pdf/media/sp_approach_to_sukuk_17-s...

"from its parent also benefited from strong implicit government support."