Dubai’s Nakheel confirms early repayment of $2.15 billion bank debt…

Dubai developer Nakheel on Wednesday confirmed the early repayment of its entire AED7.9 billion ($2.15 billion) bank debt, nearly four years before the final loan instalment due in March 2018.

Nakheel said in a statement that it has issued instructions for AED5.54 billion to be repaid to lenders on Thursday – just six months after its previous early payment of AED2.35 billion in February.

In addition, the company said it has issued instructions for the interest payment of AED129 million, covering the six months from February 27 to August 28.

Nakheel added in the statement that it will pay 31 banks, including 10 from the UAE and 21 from overseas.

A total of AED3.45 billion will go to UAE banks, with Emirates NBD and Dubai Islamic Bank being the biggest beneficiaries. The remaining AED2.09 billion will be paid to overseas banks.

Nakheel thanked its lenders, investors, business partners and regulatory authorities for their support throughout its financial restructuring exercise and since the implementation of its post-restructuring business plan began in August 2011.

Last month Nakheel said it made a first-half net profit of AED1.2bn ($327m), up 57 percent on the same period last year.

Revenues for the first half of the year stood at AED4.23bn, up 36 percent, the company said in a statement.

It added that the results “demonstrate the continuing growth and strengthening of the real estate market in Dubai and the return of investor confidence and trust”.

Nakheel said it continues to complete its near term projects and has now delivered around 6,000 properties, including around 1,400 in H1 alone, since completing its restructuring in August 2011.

* Nakheel no longer responds to media enquiries from Arabian Business, nor does it grant Arabian Business access to any of its media events or announcements. Arabian Business