Monday saw Dubai property developer Nakheel revealing that due to concerns over how it will repay its debt, it is revising the redemption terms for its $750 million sukuk which matures in 2011.

Furthermore, Islamic bonds worth $3.5 billion, which mature in December, are also held by the state-owned developer of palm-shaped islands off the coast of Dubai. There are questions over the government's plan for them.

Via a statement, Nakheel, while pointing to a notice issued to investors earlier by Deutsche Bank, the principal paying agent, said: "The document relates to a slight differential in the redemption price formula offered to the initial sukuk holders and the formula finally used in the offering circular."

It was not specified by Nakheel, however, as to why it was revising the redemption terms.

The company declared: "The difference is minimal and favorable to sukuk holders. Consent of sukuk holders is not required for the amendment; however the Transaction Administrator wished that sukuk holders be notified ahead of formal approval."

The due date of the next payment is 16th July, and on 16th January, 2011, the final payment would be made.