Islam, Islamic, Islamic News, Fatwa's and Islamic Business/Finance with Islam Online

JPMorgan Touts Nakheel Saying Default Doubtful: Islamic Finance


08 Jul 2013 07:24 GMT   التعليقات ()       إضافة تعليق       طباعة       إرسال لصديق


JPMorgan Chase & Co. is advising clients to buy Nakheel PJSC's Islamic bonds after last month's record slump as new projects boost the Dubai developer's earnings, while government backing makes a default improbable.

State-run Nakheel's 4.27 billion dirhams ($1.2 billion) of sukuk yielded 9.88 percent at 12:30 p.m. in Dubai, down seven basis points this month, after surging 179 basis points in June. That's more than twice the average gain in yields on corporate Islamic debt tracked by HSBC/Nasdaq Dubai indexes. JPMorgan listed Nakheel in a July 4 research note as its "top overweight recommendation" among Dubai real-estate debt.

Nakheel will manage to pay or refinance as much as half of the $3 billion of debt due in 2016 as it generates at least $1 billion from new projects and land sales, JPMorgan said. Investors have demanded higher yields to hold Nakheel's bonds since the company drove Dubai to the brink of default in 2009, prompting the government to extend a bailout.


Sukuk.me Wire External StoryFrom Source: Bloomberg - Read full article here

Sukuk.me is not responsible for the content of external internet sites

Source:

Loading comments ...