"Nakheel 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 ... which matures on 13 May 2010," the firm said.
A spokeswoman declined to confirm the value of the expiring bonds, which local papers have put at $980.1 million.
The payment is part of a restructuring plan announced by Dubai's government in March to inject $9.5 billion into Nakheel's former parent conglomerate, Dubai World, as part of a proposal to creditors to restructure some $23.5 billion of debt.
At the time, Dubai also announced that, as part of the restructuring plan, Nakheel would cease to be a subsidiary of Dubai World and would be held directly by the government.
Nakheel had borrowed heavily to finance its massive construction projects during the city's property boom, which ground to a halt after the emirate was hit by the global financial crisis.
Dubai was able to cover Nakheel's due debt of $4.1 billion in December thanks to a last-minute lifeline from neighboring Abu Dhabi.
Dubai World's debt, including liabilities, is around $60 billion. Dubai's total debt is estimated at between $80 and $100 billion, although some analysts say it could be as high as $170 billion.
