UPDATE 1-Nakheel says discussing Dec bond with parent firm
* Nakheel in talks with parent, Dubai World
* Statements show Nakheel owed 9.28 bln dirhams by parent
(Adds comment by analyst, background)
DUBAI, Nov 11 (Reuters) - Dubai developer Nakheel [NAKHD.UL] is in discussions with its parent company, state-owned Dubai World [DBWLD.UL] regarding its debt maturing next month, the company said on Wednesday.
Nakheel has a $3.5 billion in bonds due in December and questions remain over the government's plans for them, although one scenario is to repay the debt in full. [ID:nLP85703]
"Nakheel can confirm it is in discussions with its parent regarding the forthcoming December 2009 sukuk maturity," the company said in a statement on the website of NASDAQ Dubai where the bond is listed.
Spokespeople for Nakheel and Dubai World declined to comment further.
"With Dubai World being the parent company they are obviously in discussions and it is expected to happen a lot in the run-up to the bond's maturity," said Fahd Iqbal, GCC chief strategist at EFG-Hermes in Dubai.
One of the holders of the $3.5 billion bond, who declined to be identified, told Reuters earlier this week that he saw no change to expectations that the developer of man-made islands in the shape of palm fronds would honour its obligations in December.
According to its 2008 financial statements, Nakheel was still owed 9.28 billion dirhams after lending Dubai World 11.01 billion dirhams during the year.
Nakheel's Islamic bond prices XSXS0277553052=R were trading at 110.25. Deutsche Bank is the principal agent of the bond.
Dubai's ruler, Sheikh Mohammed bin Rashid al-Maktoum moved on Monday to assure investors it will have the support of its wealthier neighbour Abu Dhabi and said the emirate's future ambitions remain undeterred. [ID:nL9382767] (Reporting by Jason Benham and Raissa Kasolowsky; Editing by Greg Mahlich)
