Saudi Real Estate Refinance completes $932mln sukuk issuance

Saudi Real Estate Refinance completes $932mln sukuk issuance

The Saudi Real Estate Refinance Company (SRC), a wholly owned unit of Saudi sovereign wealth fund PIF (Public Investment Fund), has successfully completed its latest sukuk issuance of SAR3.5 billion ($932 million).

Marking the final two tranches under its SAR20 billion government-guaranteed sukuk programme, the issuance was offered in 5 and 7-year dual tenors.

On the key achievement, CEO Fabrice Susini said: "The issuance witnessed interest from the institutional investor community, reinforcing the confidence in the local market and in SRC's operational framework; it also affirms SRC’s pivotal role in contributing to Vision 2030 Housing Program as well as to the Financial Sector Development Program."

"SRC's consistent sukuk issuances reinforce our commitment to taking part in financial sector development in Saudi Arabia. Through these issuances, SRC is contributing to diversifying funding for the real estate sector and to driving growth. By providing banks and real estate finance companies with liquidity, SRC enables further development in the home financing sector increasing homeownership rates among Saudi citizens," he stated.

According to SRC, HSBC acted as lead coordinator on the latest offering, while the joint lead managers are Aljazira Capital, HSBC Saudi Arabia, Alrajhi Capital, and SNB Capital.

Earlier this year, SRC received