DUBAI, June 25 (Reuters) - Dubai property developer Nakheel will repay all its outstanding debt to banks by August this year, four years ahead of the schedule mandated by its restructuring plan, the state-run company’s chairman said on Wednesday.
The repayments will total 5.54 billion dirhams ($1.5 billion), and will be funded from Nakheel’s own resources rather than support from the Dubai government, Ali Rashid Lootah told a news conference.
In February, Nakheel said it had initiated early repayment of 2.35 billion dirhams of bank debt 18 months ahead of maturity in September 2015.
Nakheel was a casualty of Dubai’s 2008-2009 property market crash, pushing it close to default and forcing it to restructure its debt. But its prospects have improved over the past two years with a strong recovery of Dubai’s real estate market.
In April, the company reported a 28 percent year-on-year increase in first-quarter net profit to 629 million dirhams, on revenues of 1.37 billion dirhams. (Reporting by Nadia Saleem; Writing by Andrew Torchia)