Arab Today, arab today dubai\s nakheel trade creditors keen to sell bond
Last Updated : GMT 00:47:20
Arab Today, arab today
Arab Today, arab today

Dubai\'s Nakheel trade creditors keen to sell bond

Arab Today, arab today

Arab Today, arab today Dubai\'s Nakheel trade creditors keen to sell bond

Dubai - Arabstoday

Trade creditors holding the recently issued first tranche of troubled developer Nakheel\'s five-year Islamic bonds, or sukuk, are inviting bids for the paper, but buyers are so far limited, traders said. The $1.03bn issue, the first instalment of a total $1.31bn offered as part of a restructuring deal to repay trade creditors, was issued at the end of August, and offers a profit rate of ten percent. Two sources said investment bank Morgan Stanley was thought to be one of the bidders for an auction of AED320m of bonds offered by an undisclosed seller. One of the sources, a Gulf-based fixed income trader, said there were about six banks in the market collecting bids for the bonds, while another said some banks were sourcing paper from creditors directly, to sell on to investors or hold themselves. \"There is definitely a great deal of interest among [trade creditors] looking to trade,\" said one person familiar with the matter, who declined to be identified. \"The creditors are actively investigating the pricing and there\'s an appetite for it. Some are taking the view of selling the entire holding, while others are looking to sell a portion and hold on to some of it for the interest.\" Nakheel has indicated plans to eventually list the bond on Nasdaq Dubai. Buyers who have expressed an interest include US investors, including hedge funds, London banks, and some regional relationship banks the trader said. In July it emerged that a Hong Kong-based distressed debt firm founded by ex-Deutsche Bank veterans had approached trade creditors to taking the claims off their hands. Latest bids on Nakheel 2016\'s range between 78.289 and 78.500, corresponding to a yield of between 16.6 percent and 16.3 percent, according to Thomson Reuters data, down from bids of just over 80.000 earlier in the day. \"Most contractors have already received 40 percent of their claim in cash. If they manage to monetise the remaining 60 percent [the sukuk] at current levels, this gives them an aggregate recovery on their Nakheel exposure of almost 90 percent,\" said Chavan Bhogaita, head of markets strategy at National Bank of Abu Dhabi. \"This is pretty good, given the severity of this situation and also where estimated recovery rates stood some eighteen months ago,\" Bhogaita said, adding that though some trades were being executed in the market, volumes were not yet significant. Nakheel, which developed island complexes in the shape of the world and a palm tree during the glitzy emirate\'s spectacular boom, was forced to write off up to AED78.6bn ($21.4bn) of its real estate assets after a property crash.The developer is restructuring a total of $16.06bn in debt, including $8.71bn of government debt, which is to be converted into equity.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today dubai\s nakheel trade creditors keen to sell bond Arab Today, arab today dubai\s nakheel trade creditors keen to sell bond

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:38 2017 Friday ,24 March

Pass health bill Friday or he'll move on

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday