Bond markets reacted with alarm to Wednesday’s news that Nakheel, the property arm of government-owned Dubai World, was restructuring a bond due for redemption in December, amid fears that Nakheel’s move will be considered a technical default. Traders had expected the emirate to use the proceeds of a $5bn bond issue earlier in the day to fund the impending redemptions. Instead, the government asked investors in Dubai World and Nakheel to “stand still” and extend maturities until at least May 30 2010.

This entry was posted by Gwen Robinson on Thursday, November 26th, 2009 at 5:06 and is filed under Capital markets. Tagged with dubai world, Nakheel. Edit this entry.