Clifford Chance advises Nakheel on third tranche of trade creditor Sukuk.
This latest issuance brings the total amount issued by Nakheel to its trade creditors to AED 4.148 billion, and further underpins Nakheel's commitment towards successfully implementing its revised business plan and the settlement of trade creditor claims.
The issuance of the tap certificates settled on 7 January 2013. The tap certificates form part of and are fungible with the two pre-existing tranches of: AED 3.8 billion certificates issued by Nakheel to trade creditors on 25 August 2011; and (ii) the first tap issuance of AED 227.4 million certificates issued by Nakheel to trade creditors on 25 April 2012. Both previous issues were also advised on by Clifford Chance.
The tap certificates represent only the second fungible tap issuance of any previously issued Sukuk by an issuer in the United Arab Emirates to date.
Debashis Dey, Partner at Clifford Chance, commented, "Nakheel is unique amongst UAE issuers in using a "tap mechanic" for sukuk issues. It is an interesting and efficient mechanism for managing its settlement of trade creditor claims. Clifford Chance is proud to have advised Nakheel on this first of its kind instrument."
The Clifford Chance team was led by Capital Markets Partner, Debashis Dey, who was assisted by associates Mark Dickinson and Brian O'Leary.
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