Nakheel trade creditors will be offered a large-scale Islamic bond as part of a debt restructuring plan issued by parent firm Dubai World last Thursday, a source close to the company told Reuters on Sunday.
Nakheel didn’t elaborate on the form of tradable security that would be offered to creditors according Dubai World’s proposal, submitted to lenders last Thursday, but is expected to make a separate statement regarding the deal soon.
A source told Reuters that a sukuk is planned as it would allow the company to reach a future bondholders from both conventional and Islamic financial institutions that must abide by sharia-compliant investments.
A spokesman for Dubai World was not immediately available to comment.
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