SRC issues SAR 4 billion sovereign guaranteed Sukuk under a program of SAR 10 billion, provides liquidity to the Saudi housing market
- Date: 09-Mar-2021
- Source: Saudi Press Agency
- Sector:Real Estate
- Country:Saudi Arabia
SRC issues SAR 4 billion sovereign guaranteed Sukuk under a program of SAR 10 billion, provides liquidity to the Saudi housing market
SRC issues SAR 4 billion sovereign guaranteed Sukuk under a program of SAR 10 billion, provides liquidity to the Saudi housing market
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Riyadh, March 9, 2021, SPA -- Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund (PIF), announced today the successful completion of the dual tenor SAR 4 billion (approx. USD 1.067 billion) Sukuk issuances.
The issuance is part of the newly launched SAR 10 billion Saudi-Riyal Sukuk program under which SRC will issue sovereign-guaranteed Sukuk targeting local investors. Over 30% of the issuance was subscribed by a mix of asset managers, pension fund, government funds, and insurance companies.
The SAR denominated issuance by SRC was offered in the seven and 10 year tenors. The issuances were a private offering to Saudi-based institutional investors attracting an orderbook in excess of SAR 8 billion which represents an oversubscription of 2.15 times. This underscores the investor confidence in the strength of the Saudi housing market which witnessed an increase in homeownership from 45% in 2017 to 62% in 2020.
Majed Al-Hogail, the Minister of