Dubai based developer, Nakheel has announced that it will be completely debt-free following full payment of its AED 4.4 bn trade creditor, sukuk on Thursday 25 August 2016.
The deal, which is inclusive of all development projects including Nakheel’s hospitality portfolio, namely the recent announcement of the 18-storey hotel project in JVC, the new hotel in Dragon City and Ibn Battuta Mall which adds another 670 rooms to its growing hospitality portfolio.
The scheduled payment marks the end of the company’s financial restructuring, which began in August 2011, with all creditor obligations now fulfilled. Two years ago, on 21 August 2014, Nakheel had prepaid all AED 7.9 bn of its bank debt – four years before the scheduled repayment date.
Ali Rashid Lootah, Chairman of Nakheel, said: “Today is undoubtedly one of the biggest milestones in our history. Our debt-free status is a true testament to the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum and the trust that he and the Government of Dubai placed in our company. Without it, we would simply not be in the position we are in today.
“We are also ever thankful to the trade creditors, lenders, investors, business partners and regulatory authorities who trusted and supported us throughout, and played a significant role in the successful implementation of the business plan adopted in August 2011.
“In six years since, since March 2010, Nakheel has achieved what some considered impossible: completion – ahead of time – of one of the largest, most complex financial restructuring exercises, followed by the successful execution of a new business plan that placed us on a new path to growth.”