CAPITAL MARKETS - First trade creditor sues Nakheel

The first trade creditor has filed a lawsuit against Dubai World's Nakheel property developer unit with the special tribunal set up to handle disputes over its debt restructuring, which could further delay a settlement.
The tribunal said the suit, filed in mid-August, was served by Dubai-based Construction Delivery Group (CDG).

CDG's lawsuit contends that it is owed Dh50 million ($13.6 million) in principal, interest and damages related to a facilities management contract for properties at the Palm Jumeirah, one Dubai's three artificial palm-shaped islands.

GENERAL - Dubai World Reaches $24.9 Billion Debt Deal

DUBAI, (Reuters) – State-owned conglomerate Dubai World DBWLD.UL on Friday reached a formal deal to restructure around $24.9 billion of liabilities, partly easing recently heightened concerns over the Gulf emirate's debt woes.

SUKUK - Sukuk Developments: Hybrid Structures and Malaysian Expansion

Qatar’s $3.5 billion conventional bond issue may be the season’s most noteworthy Islamic finance deal. Malaysia, issuer of 75% of the world’s sukuk, has flexed even more muscle as it branches into the nascent Islamic finance market of neighboring Singapore. Anecdotally, these offerings are noteworthy; collectively, they may help ameliorate some high-profile setbacks for the industry.  The world sukuk market seems to have regained its footing. Thomson Reuters data show that global issuance from 2007-2009 dipped from $46.2 billion in 2007, to $39.6 billion in 2008, and back up to $46.3 billion in 2009. For the 12 months ending May 2010, sukuk issuance stands at $45.1 billion, with the summer’s major sukuk not yet included. 

SUKUK - Sukuk Four-Year Low Yields Fail to Deter Funds: Islamic Finance

Aug. 20 (Bloomberg) -- Islamic bond yields at four-year lows are failing to deter investors amid a flagging global recovery and dwindling new issuance of sukuk.

The average yield on dollar-denominated notes that comply with religious principles from Dubai to Malaysia fell 25 basis points, or 0.25 percentage point, so far this week to 5.22 percent, the lowest level since November 2005, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. The yield has dropped 204 basis points this year.

SUKUK - Ringgit Rally Boosts Sukuk as Yields Tumble: Islamic Finance

Aug. 6 (Bloomberg) -- Asia’s best-performing currencies are luring funds to local Islamic bonds in Malaysia and Indonesia, helping to drive benchmark yields to the lowest levels in more than a year.

The yield on Malaysia’s five-year ringgit-denominated sukuk declined 33 basis points, or 0.33 percentage point, this year to 3.51 percent yesterday after touching its lowest since March 2009 at 3.5 percent on July 23, according to data from the central bank. Indonesia’s 9 percent rupiah-note yielded a record low 7.08 percent Aug. 4, a drop of 172 basis points this year, prices from Indonesia’s Interdealer Market Association show.