Nakheel may pay about $980m of Islamic bonds due May 13 even if its parent Dubai World doesn’t reach a formal debt restructuring agreement, a government spokeswoman said.

A formal agreement with creditors isn’t needed to repay the bonds, said the spokeswoman for Dubai’s Department of Finance yesterday.

Dubai World in March said Nakheel’s local currency and dollar denominated sukuk will be paid on time “assuming sufficient support” for the restructuring plan from banks.

arabianbusiness.com