Dubai-based developer Nakheel, restructuring $10.9 billion in debt, has offered lenders repayment after four and a half years at a rate of 4 percent on a portion of its debt, sources familiar with the deal said.

The terms of the restructuring, covering mainly bilateral loans and a $1.85 billion syndicated Islamic loan due 2012, vary from the all-lender meeting in July which indicated repayment over five to seven years.

They relate to the syndicated loan, signed in 2007, which about 22 banks participated in, one of the sources said, and an agreement could be close. Nakheel said in March it hoped to conclude its restructuring by the end of the second-quarter.

Another source, at a creditor bank who has seen the terms sheet, said the same terms would apply across some of the other facilities under the restructuring.

'The terms should be pretty commercial. I think the way things are going, it’s pretty close to a resolution,' the source at one of Nakheel's lenders said.

'A document is currently under circulation. There are various facilities. But the tenor is 4.5 years on the facilities. The interest rate is LIBOR (London interbank lending rate) plus 4 per cent,' the source said, adding banks had come out on top.

Nakheel declined to comment when contacted by Reuters.

An agreement with trade creditors - expected to get 60 per cent repayment in the form of sukuk certificates carrying an interest rate of 10 per cent, and 40 per cent in cash - is also thought to be close.

'The restructuring agreements for trade creditors have been sent out at the end of March. Under the agreement, creditors must appoint a bank as custodian and that is currently being put in place,' said one source working closely with the creditors.

'The terms are pretty much as anticipated. They are just going over a few issues ...  details.'     Another source close to the sukuk issue said Nakheel will probably start to deliver its sukuk certificates by early May. – Reuters