RIYADH, Saudi Arabia, Dec. 12, 2021 /PRNewswire/ — Saudi Real Estate Refinance Company (SRC) successfully completed issuing a SAR 2 billion Sukuk to support lenders in the housing market, with the aim to further expand home ownership by making it more affordable. The Sukuk was guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance.
The 10-year Sukuk was issued at a competitive fixed profit rate of 3.04% marketed to Saudi institutional investors, the deal was oversubscribed 2.5 times
Fabrice Susini, CEO of SRC, which is wholly owned by the Public Investment Fund (PIF), said: “The very positive reception in the market for our Sukuk demonstrates strong confidence in the Saudi housing market and economy, and robust investor support for our business model as home ownership continues to increase. The funding raised will enable us to expand our relationships with home finance lenders, as Saudi Arabia moves closer to its target of achieving 70% home ownership among Saudi nationals by 2030.”
“Our latest Sukuk issuance also adds further depth to the Saudi fixed income market in line with the goals of the Financial Sector Development Program (FSDP) as part of Vision 2030.”
SRC’s new series of Sukuk was issued under its SAR 10 billion Sukuk Programme established earlier this year, under which SRC has the ability to issue sovereign-guaranteed instruments targeting local investors. Its first Sukuk offerings under the programme were issued in March 2021 in two…
