Nakheel to repay entire $1.5 billion bank debt four years ahead of time
Dubai developer Nakheel will repay all AED 7.9 billion owed to bank lenders with an early repayment in August 2014, nearly four years before the final loan instalment due in March 2018, the company reported today.
Nakheel’s scheduled prepayment of AED 5.54 billion in August will come just six months after its previous early repayment in February this year, when the company paid off AED 2.35 billion of its bank loan.
Ali Rashid Lootah, Chairman of Nakheel, said: “This is perhaps the most significant milestone in the history of Nakheel, and is a true testament to the support and guidance of His Highness Sheikh Mohammed Bin Rashed Al Maktoum and the trust and faith that he and the Government of Dubai have placed in our company. Without it, we would simply not be in the position we are in today.
“Nakheel is also ever thankful and grateful to the lenders, investors, business partners and regulatory authorities who placed their trust and confidence in our company, supporting us throughout this challenging time. They have played a key role in our success since the implementation of our post-restructuring business plan began in August 2011.
“It is now four years since the new Board of Nakheel was appointed. During this time, Nakheel has achieved what some considered impossible: completion of one of the largest, most complex financial restructuring exercises followed by the successful execution of a new business plan that has placed us on a path to new growth.”
Nakheel is able to prepay all of its bank debt ahead of schedule due to savings of around AED 23 billion on its business plan, achieved through improved cash flows generated from property handovers, sales of new projects, leasing, retail, value engineering of ongoing projects and amicable settlements with the majority of trade creditors.