PIF’s Saudi Real Estate Refinance Company completes latest sukuk issuance of SAR3.5bn

PIF’s Saudi Real Estate Refinance Company completes latest sukuk issuance of SAR3.5bn

Public Investment Fund-owned Real Estate Refinance Company (SRC) successfully completed its latest sukuk issuance of SAR3.5bn. This is the sixth tranche under its upsized 20bn sukuk programme, guaranteed by Arabia through the Ministry of Finance. The latest tranche issued demonstrates strong investor confidence in SRC and the kingdom’s economy, the issuance will enable SRC to keep mortgage rates at low levels. The company was established in 2017 with the aim of helping transform the local housing market. Real Estate Refinance Company obtained a license from the Central Bank to operate in real estate refinancing through the secondary market. Real Estate Refinance Company recently obtained an A- (stable) credit rating from S&P Global and was upgraded by Fitch earlier this year to A+ (stable), while upgraded its outlook on SRC to “Positive”. Fabrice Susini, CEO of the company 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. As SRC continues to refinance existing financings for financiers, 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