Saudi Real Estate Refinancing (SRC) completes its local sukuk program worth SAR3.5B

Saudi Real Estate Refinance Co. (SRC), wholly owned by the Public Investment Fund (PIF), completed its latest Sukuk issuance of SAR 3.5 billion. This issuance is part of its Saudi Riyal-denominated program, backed by government guarantees. The issuance included the offering of two final tranches, completing the local sukuk program with a total value of 20 billion Saudi Riyals, with dual tranches having durations of 5 and 7 years.

The CEO of SRC, Fabrice Susini, stated that the issuance witnessed investor interest, which demonstrates their confidence in the local market and the Company's business model, reaffirming its active role in the real estate financing market as part of its continuous efforts to contribute to achieving the goals of Vision 2030 programs.

He added, "The Company's ongoing sukuk issuances reinforce its commitment to contribute to the development of the financial sector in the Kingdom by providing innovative solutions in the real estate refinancing market. This is driven by our dedication to continue developing the real estate financing market, providing liquidity, and supporting financing entities to achieve further growth in homeownership rates for Saudi families."

SRC further revealed that HSBC acted as the lead arranger for the sukuk issuance, while "Aljazira Capital," "Al Rajhi Capital," "HSBC Saudi Arabia," and "NCB Capital" handled the offering management.

It is worth mentioning that the Saudi Real Estate Refinance Company has received an (A+) stable rating from Fitch Ratings, an (A2) positive rating from Moody's, and an (A-) stable rating from S&P Global Ratings.

Established in 2017 by the Public Investment Fund as part of government initiatives to support Vision 2030’s housing program, the Saudi Real Estate Refinance Company serves as a cornerstone and a key driver for the growth and sustainability of residential real estate financing in the Kingdom. SRC obtained a license from the Saudi Central Bank (SAMA) to operate in the secondary real estate financing market with the aim of developing the real estate market and providing innovative refinancing solutions and liquidity.