SRC completes Sukuk issuance worth SAR 3.5 bln

Logo of Saudi Real Estate Refinance Co. (SRC)

Saudi Real Estate Refinance Co. (SRC), wholly owned by the Public Investment Fund (PIF), completed its latest Sukuk issuance of SAR 3.5 billion, which marks the sixth tranche under the upsized SAR 20 billion Sukuk program, guaranteed by Saudi Arabia through the Ministry of Finance, Saudi Press Agency reported.

The success of the latest tranche demonstrates strong investor confidence in the local market and SRC's business model, which reaffirms its vital role in the Kingdom's mortgage market, in line with the goals of Vision 2030, the company stated.

CEO Fabrice Susini said: “The positive response from investors to SRC's latest Sukuk issuance is a clear testament to the strength of the Kingdom's housing market and economy".

"We are proud to contribute to the development of a robust secondary home financing market that supports the efficiency and stability of the primary housing market. This funding will enable us to continue increasing market liquidity and supporting originators and financiers, ultimately promoting stability in the Saudi mortgage market and accelerating homeownership growth in the Kingdom," he added.

Al Rajhi Capital and HSBC Saudi Arabia acted as joint lead coordinators of the latest offering, while the joint lead managers are AlJazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, and Alinma Investment Co.