Nakheel, one of Dubai's leading developers, will pay more than half of its bank debt of AED6.8 billion ($1.9 billion) one year before its first due date, according to a company announcement.
The company plans to pay AED 2.35 billion during the first quarter of 2014, and an additional AED1.65 billion during the third quarter.
Nakheel iconic projects in Dubai include Palm Jumeirah and The World, among others. After falling into hardship during the financial crisis, Nakheel entered a restructuring plan with the government in 2011 in an attempt to complete near-term projects.
"In 2011, Nakheel pledged to construct and deliver some 9,000 units over a five year period across a number of projects that had been stalled during the global financial crisis," Nakheel chairman Ali Rashid Lootah said in the announcement. "We rose to this challenge and, thanks to the support of the Government of Dubai, Nakheel customers and other stakeholders, have been able to achieve this remarkable milestone."
Under the restructuring terms, repayments are due in 2015, 2016 and 2018. The early repayment this year reflects "the strength of the local real estate market, significantly improved economic conditions in the UAE and the growing trust and confidence among investors in Dubai and Nakheel," the company said.
The Dubai property market, considered a poster child for the previous bubble burst, is on a quick recovery path. Fellow developer Emaar Properties is enjoying increased property values in the Burj Khalifa, the world's tallest building.
Nakheel also said a robust financial performance led to improvements of approximately AED22 billion to date over the plan period. From 2011 to 2013, Nakheel witnessed almost a triple increase in cash flows, the company said, due to recommencing all 10 of its 'near term' projects.
By the end of 2013, Nakheel had handed over 7,000 units to customers, while launching new developments. By year-end, the company had more than 3,500 units with an estimated sale value of AED10 billion in the development pipeline throughout various developments. The first project deliveries are expected in 2014.