Nakheel has proposed repaying its bank debt after five years and one outstanding $1.85 billion syndicated Islamic loan after seven, a source close to the company said.
Bankers have until the end of August to respond to Nakheel's multi-billion dollar restructuring plan, including the rates of interest and repayment schedules for syndicated and bilateral loans.
The source said under the plan, repayment of Nakheel's $1.85bn Islamic loan, due 2012, would take seven years while all other bank lending debt would be paid after five years.
A spokeswoman for the Dubai Government and a spokesman for parent firm Dubai World both declined to comment.
Nakheel's talks with creditor banks centre on the syndicated loan, which is based on a Shariah-compliant Ijara leasing structure and backed by a tangible asset, as well as an unknown number of bilateral loans.
Barclays Capital, National Bank of Abu Dhabi, and Dubai Islamic Bank comprise a co-ordinating committee handling the restructuring.
Emirates Business
