Dubai: Dubai has given developer Nakheel, part of a $24.8 billion (Dh91 billion) debt restructuring at its parent Dubai World, enough funds to repay a $980 million Islamic bond due on May 13, Nakheel said in a statement yesterday.

Nakheel, the builder of both of the Palms, is widely expected to repay the bond on time despite the absence of a formal debt deal on Dubai World.

"Nakheel PJSC today announces that the Dubai Financial Support Fund has made available sufficient funds to allow for the repayment in full of the sukuk issued by Nakheel Development 3 Limited, which matures on 13 May 2010," Nakheel said in a statement to the Nasdaq Dubai bourse yesterday.

Support Fund

The Dubai Financial Support Fund was set up to distribute funds, raised via a $20 billion sovereign bond programme, to government-related entities.

Nakheel's dirham-denominated bond was trading at 99.75 cents to the dollar yesterday, after the statement, according to data from Deutsche Bank Autobahn.