SRC plans to issue USD-denominated sukuk in Q2 2023

Fabrice Susini, CEO of Saudi Real Estate Refinance Co. (SRC)

Saudi Real Estate Refinance Co. (SRC) announced its plan to issue dollar-denominated sukuk around the end of Q1 and the beginning of Q2 2023, at a value of no less than $500 million, Reuters reported, citing CEO Fabrice Susini.

After a deliberate discussion with partners, the company is working on updating the relevant offer documents.

The company mandated JP Morgan, NSGB, Gulf International Bank, HSBC and Islamic Development Bank as joint lead managers and bookrunners of the proposed offer, Susini noted.

Meanwhile, SAR sukuk and bonds are still active, CEO added, stating that the company may issue EUR-dominated bonds, if the interest rates would witness a notable increase.

The impact of higher interest rates on the company is still limited, considering fixed-interest mortgages represent 70% to 80% of SRC’s mortgage portfolio.

On the other hand, Susini pointed out that the company has no plans at the current time for an initial public offering.

However, this is likely to be proposed on the table in the coming years, he noted, indicating that the Public Investment Fund will retain at least a 51% stake.