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Dubai’s Palm Island developer to pay $1.1B in debt this year

January 05, 2014 01:00PM

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Nakheel CEO Sanjay Manchanda and Palm Island in Dubai

WEEKENDEDITION Nakheel, the Dubai developer behind the city’s iconic palm-shaped islands and whose credit problems were at the center of Dubai’s 2009 financial crisis, has announced that it will make an early debt repayment of 4 billion dirhams, or $1.1 billion, this year.

The decision comes after a good year of strong growth in the real estate industry and improved economic conditions in Dubai, Nakheel announced in a statement cited by Fox News.

Nakheel plans to pay an additional 3 billion dirham, or approximately $820 million in 2015 when the company’s first installment of 6.8 billion dirham is due.

In all, the company owes $2.15 billion in bank debt and it has promised to repay trade creditors $1.23 billion in Islamic bonds that mature in 2016, according to Fox News. [Fox News]Christopher Cameron

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