The property developer that is part of the debt-saddled Dubai World conglomerate says it will make a $10 million payment this month on a $750 million Islamic bond that matures next year.
In a statement posted on the Nasdaq Dubai web site on Tuesday, Nakheel said it will make the $10.3 million payment on Jan. 19, when the payment is due.
Dubai World, Dubai’s chief engine for growth, wants creditors to delay repayment on roughly $26 billion of its $60 billion in debts.
Dubai’s neighbour, oil-rich Abu Dhabi, recently spared Nakheel from a $4.1 billion default on an Islamic bond through a $10 billion bailout.
Dubai World and Nakheel amassed the debt through years of tapping into cheap credit to finance projects such as Dubai’s palm shaped islands.