Dubai's Jebel Ali Free Zone (Jafza) has proposed a three-part refinancing plan to creditors for its $2.04 billion Islamic bond which matures in November, a report said on Tuesday.

The state-linked industrial free zone held a meeting with bankers in Dubai this week, Meed said quoting unidentified sources present at the meeting.

Jafza proposed reducing the debt level by 700 million dirhams ($190.58 million), raising a new bank loan of about 4 billion dirhams and issuing a new sukuk worth about 2.4 billion dirhams, Meed said.

Jafza was not immediately available for comment.

Reuters reported last month that Citigroup was advising Jafza and that the proposed structure involves an approximately $300 million cash payment, a new Islamic bond and a club loan involving up to seven banks.

Dubai Islamic Bank, the emirate's third-largest bank by market value, holds more than $500 million of the current bond.    

On Tuesday, Meed said new financing is expected to be put in place by July. Citigroup, Dubai Islamic Bank and Standard Chartered are all expected to play significant roles in the new financing, according to the report.

Jafza, which runs an industrial free zone on the outskirts of Dubai, has previously said it aims to refinance the $2.04 billion Islamic bond, or sukuk.

Citigroup is also advising Jafza on the potential sale of its UK warehouse asset Gazeley. Jafza and Gazeley are part of state-owned conglomerate Dubai World Group umbrella focusing on technology, logistics and industrial parks. - Reuters