Dubai World, the state-owned holding company restructuring $26 billion in debt, may offer creditors a 20 percent haircut, a 10-year extension on maturities and a government repayment guarantee for creditors, JPMorgan Chase & Co. said.
The forecast excludes Nakheel PJSC bonds, which the New York-based bank said may be repaid at face value over a longer maturity, according to a report dated March 8.
JPMorgan maintained its “neutral” recommendation on Nakheel’s Islamic bonds due this year and next, saying the securities “look expensive” at current levels, assuming the restructuring stretches out maturities.
Nakheel’s $750 million sukuk, or Islamic bond, maturing in January headed for its highest close in a month, adding 4.4 percent to 53.50 cents on the dollar at 1:40 p.m. in Dubai, according to prices compiled by Bloomberg.
Dubai World, the parent of Nakheel, will ask banks for permission to delay loan repayments when it presents a plan this month, said three bankers familiar with the negotiations yesterday. [Read More]
