Dubai's Nakheel to tap state funds to repay bonds

[December 30, 2010]  DUBAI, United Arab Emirates (AP) -- The Dubai property developer behind the emirate's manmade islands says it will use government financial support funds to repay more than $800 million in debt coming due next month.

Nakheel said in a regulatory filing to the Nasdaq Dubai stock exchange that the Dubai Financial Support Fund has made the cash available to repay the sukuk, a type of Islamic bond.

It matures on January 16 and is the last sukuk Nakheel has listed on the exchange.

Nakheel says investors will be paid a total of $871.6 million.

The state-run firm is still in talks to restructure at least $10.5 billion in debt.

[Associated Press]

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