Dubai Developer Nakheel Completes Restructuring

The indebted state developer behind Dubai's man-made islands says it has completed a long-awaited financial restructuring and will issue over $1 billion in Islamic bonds to some of its creditors.

Nakheel said Wednesday that the Islamic bonds, known as sukuk, would be issued on Thursday.

Nakheel's 3.8 billion dirham ($1.04 billion) bond issuance is part of a larger payout to contractors still owed money by the company, which was at the heart of Dubai's financial meltdown in late 2009.

The Islamic bonds will be tradable and backed by an assortment of Nakheel properties.

Nakheel is controlled by Dubai's government. It separated from troubled parent Dubai World as part of the restructuring this week.