Nakheel lists Dh3.6 billion Sukuk for 2 years

Palm Jumeirah, iconic real estate develpment in Dubai

Nakheel, a Dubai World company and one of the world's largest and real estate developers, has listed a 2-year Dirham denominated Sukuk (Islamic-compliant bond) on the Dubai International Finance Exchange (DIFX) valued at Dh3.6 billion.

Kar Tung Quek, CFO, Nakheel said, "Nakheel achieved land and property sales of approximately Dh23 billion in the first 4 months of this year compared with Dh20 billion in all of 2007 that has undoubtedly boosted investor confidence and demand for this Sukuk offering. Whatever may be happening in credit markets elsewhere, investors here are really seeing how robust the Dubai real estate market is'.'

The Sukuk will conform to the principles of Islamic Sharia and will be based on an Ijara (lease financing) structure. Dubai Islamic Bank, JP Morgan and NBD Investment bank were the lead managers and joint book runners for the transaction. Dubai World is guaranteeing the payment obligations under the Sukuk.