Nakheel PJSC’s Islamic bonds, which rallied 37 percent last year, were cut to sell by Exotix Ltd., which said the Dubai-based developer’s debt no longer accurately priced in the risk of a default.
It’s “highly unlikely” that Nakheel will manage to pay the principal on the notes, which mature in 2016, from its own capital, Exotix said in an e-mailed note today. The developer, which drove Dubai to the brink of default just over three years ago, may fall 70 percent short of funds required to settle $3 billion of sukuk and bank debt maturing that year, it said………………………………………..Full Article: Source