SRC Completes Pricing of its First $2 Billion International Sukuk Offering

The Saudi Real Estate Refinance Company (SRC), a PIF Company, has successfully completed the pricing of its first government-guaranteed international Sukuk, valued $2 billion. The issuance, structured in two tranches with maturities of three and ten years, was oversubscribed six times, reflecting strong demand from more than 300 institutional investors.
In a press release issued today, this Sukuk is part of SRC’s $5 billion international Sukuk program that was listed in the London Stock Exchange (LSE) and is backed by strong credit ratings, reinforcing the company’s position as a key player in the global housing finance market. The issuance will be listed on the International Securities Market (ISM) of the London Stock Exchange (LSE), further enhancing market liquidity and supporting Saudi Arabia’s mortgage finance ecosystem.
Minister of Municipalities and Housing and Chairman of the Board of the SRC Majed Al-Hogail said: “The successful listing of the international Sukuk Programme at the London Stock Exchange (LSE) reflects the unwavering support of our wise leadership and reinforces Saudi Arabia’s housing finance ecosystem, while providing innovative financing solutions for citizens. This marks a significant milestone in integrating the Saudi economy with global markets, attracting foreign direct investment, enhancing liquidity, and developing the secondary mortgage market in Saudi Arabia.”
Al-Hogail added: “Saudi Arabia aims to expand the mortgage finance sector by SAR500 billion by 2030, reaching SAR1.3 trillion. The Kingdom’s mortgage market was approximately SAR800 billion in 2024, up from SAR200 billion in 2018. These financings now account for 23% of total bank assets.”
He highlighted that this growth is driven by the Kingdom’s mega projects and the objectives of Vision 2030, which set a target homeownership rate of 70% for Saudi families by the end of the decade. By the end of 2023, homeownership reached 63.7%, surpassing the 63% target.
Meanwhile, CEO of SRC Majid Al-Abduljabbar emphasized that the issuance reflects global market confidence in the Saudi economy and strengthens the diversification of funding sources.
He added that “The listing of the Sukuk Programme on the LSE not only strengthens SRC’s global presence and strategy to attract a diverse base of international investors, but also solidifies the company’s position as a key player in the mortgage finance market, paving the way for new strategic partnerships and high-quality international investments.”
Al-Abduljabbar said that the successful listing of the international Sukuk also reflects SRC’s commitment to providing innovative financing solutions and accelerating the growth of Saudi Arabia’s housing sector, contributing to the objectives of the Housing Program and the Financial Sector Development Program.
SRC holds strong credit ratings from leading rating agencies, including Fitch (‘A+’ – Stable), S&P (‘A’ – Positive), and Moody’s (A2 – Positive). These ratings reinforce the company’s strong position in launching its first international Sukuk Programme, which aligns with global Sukuk market standards and best practices in Islamic finance.
The Saudi Real Estate Refinance Company (SRC) was established by the Public Investment Fund (PIF) in 2017 to develop Saudi Arabia’s real estate finance market. It operates under a license from the Saudi Central Bank (SAMA) to facilitate real estate refinancing. SRC plays a key role in achieving the objectives of the Housing Program under Saudi Vision 2030, which aims to increase homeownership rates among Saudi citizens. The company supports this goal by providing liquidity to lenders, enabling them to offer affordable housing finance to individuals. Additionally, SRC works closely with partners to strengthen Saudi Arabia’s housing ecosystem.