Nakheel New Bond Fair Value Estimated at Low 60 Cents

Nakheel PJSC’s proposed sukuk to settle trade creditor claims is estimated to have a fair value in the low 60 cents to the dollar, JPMorgan Chase & Co. said.

The property company, controlled by state-owned Dubai World, will be able to make almost all coupon payments on the five-year Islamic bonds although “we are less confident about Nakheel’s ability to redeem the principal in 2015,” JPMorgan analyst Zafar Nazim wrote in a research note e-mailed today. Nakheel will face the risk of running out of cash in 2015 unless it starts new developments and sell land in three to five years, the report said.