SRC completes SAR 10 bln sukuk program

Logo of Saudi Real Estate Refinance Co. (SRC)

Saudi Real Estate Refinance Co. (SRC), a wholly owned subsidiary of the Public Investment Fund (PIF), said it successfully completed its SAR 10 billion sukuk program, after issuing the last dual tenor at SAR 4 billion, according to a company statement. 

The last sukuk issue was 1.8 times subscribed, despite the market volatility.

SRC primarily seeks to provide more affordable mortgages for the Saudi citizens, while expanding the credit base and maintaining the market stability as well as long-term resilience, said Fabrice Susini, CEO of SRC.

The raised funds will help achieving the company’s goals, eliminate risks and protect the mortgage providers’ balance sheet and financial position, he added.

Susini expressed support for the company’s efforts to develop a robust secondary mortgage market, which will in turn bolster the wider housing sector in the Kingdom.

In March 2021, SRC announced it successfully completed its dual tenor SAR 4 billion ($1.067 billion) sukuk issuances, according to Argaam's data. It also completed its second sukuk issuance this year, at a value of SAR 2 billion in December 2021.