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Dubai repays key bond

City A.M. Reporter
DUBAI repaid a $980m Islamic bond issued by developer Nakheel yesterday while another state-owned firm said it was confident of refinancing an upcoming loan as it digs out from a massive debt burden.

Nakheel, builder of the palm-shaped artificial islands off Dubai, repaid the bond on schedule as talks continue between its parent Dubai World and lenders to restructure $24.8bn in debt.

“It’s a good first step and the right thing to do,” said Khuram Maqsood, managing director at Emirates Capital.

Meanwhile, Dubai International Capital, the overseas investment arm of Dubai Holding, reiterated yesterday it would refinance its upcoming June loan.

“We are confident of our ability to refinance the $1.25bn loan,” said a spokeswoman.

Dubai shocked global markets last year when it unveiled plans to delay repaying $26bn in debt as it restructured state-owned conglomerate Dubai World. It unveiled a $9.5bn rescue plan for the firm in March.