Early repayments for Dubai development

Last updated 07:34 06/01/2014
Dubai - landscape
House of Travel

PAYBACK: The developers of Dubai's palm-shaped islands plan to make early repayments.

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The indebted builder of Dubai's palm-shaped islands says it plans to make early debt repayments of 4 billion dirhams, or NZ$1.3b, this year.

Nakheel said in a statement Sunday that strong real estate growth and improved economic conditions in Dubai boosted its finances.

The company says it plans to pay another 3 billion dirham in 2015 when the original first instalment of 6.8 billion dirham was due.

The company owes US$2.15b (NZ$2.6b) in bank debt and promises to repay trade creditors US$1.23b in Islamic bonds that mature in 2016.

Nakheel's credit problems were a key trigger of Dubai's 2009 financial crisis, which prompted multibillion-dollar bailouts by the Abu Dhabi-based federal government.

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- AP

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