Nakheel completes financial restructuring

Company now debt-free after settling Dh4.4b sukukImage Credit: Courtesy of Cityscape Global

Nakheel has completed a financial restructuring programme that started in August 2011 after repaying a Dh4.4 trade creditor sukuk that matured last Thursday. The company said it has fulfilled all its credit obligations and now begins a new chapter with a focus on diversifying its portfolio.

Nakheel earlier prepaid a Dh7.9-billion bank debt in August 2014, four years ahead of the scheduled repayment date. Nakheel reported savings amounting to Dh25 billion with the completion of the financial restructuring plan two years ahead of a scheduled five-year implementation programme.

“Today is undoubtedly one of the biggest milestones in our history,” said Ali Rashid Lootah, Chairman of Nakheel. “Our debt-free status is a true testament to the vision of His Highness Shaikh Mohammad 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. 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.”

In settling its financial obligations, Nakheel reported year-on-year profit growth of Dh960,000 million in 201, Dh1.28 billion in 2011, Dh2.02 billion in 2012, Dh2.57 billion in 2013, Dh3.68 billion in 2014 and Dh4.38 billion last year. The company said it has paid a total of Dh38 billion to various creditors and contractors and awarding contracts worth Dh22 billion.

The company also launched more than 70 new projects, ranging from neighbourhood retail centres to entire new communities, and has handed over more than 9,132 villas and apartments and 1,923 land plots.

“As we close the curtain on our restructuring programme, we look forward to starting a fresh chapter in which we are stronger and more resilient than ever,” said Lootah.

Source: Property Weekly


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