Dubai’s Nakheel Plans $1.1B Debt Repayments

Dubai developer Nakheel plans to repay up to $1.1 billion of bank debt due this year, its chairman said, as the company benefits from a rebound in the emirate’s property sector.

Debt repayments ahead of schedule

dubaiNakheel, known as the builder of Dubai’s palm-shaped islands, was taken over by the government as part if a $16 billion rescue plan completed in 2011, after the bursting of a real estate bubble in 2009.

The company said in a statement that strong real estate growth and improved economic conditions boosted its finances.

It also plans to pay another 3 billion dirham, or nearly $817 million, in 2015 when the initial installment of 6.8 billion dirham was due.

Economic conditions

Nakheel’s financial crisis was a key trigger for Dubai’s 2009 financial crisis, which prompted multibillion-dollar bailouts by the government.

The company not only worked diligently to deliver its revised business plan, but also introduced new development projects to revive its core business.

Posted on by Wileene Grace Olimpo in Digi-Serve

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