Bidaya Home Finance Issue aggregate of SR400 million worth Sukuk

Bidaya Home Finance has successfully priced a dual-tranche offering comprising of a 2-year SR300 million Sukuk and a 1-year SR100 million Sukuk, under its SR1.0 billion Sukuk program. The Sukuk represents third issuance under its current Sukuk Programme established in December 2019 and sixth overall Sukuk issuance.

The proceeds from the issuance will be partially used to refinance Bidaya’s existing Sukuk and the balance to be used for general corporate purposes.

Bidaya’s CEO, Mazin Al Ghunaim said: “In addition to demonstrating Bidaya’s ability to access the debt capital markets, this successful conclusion further affirms institutional investors’ confidence in the fundamentals and resilience of the Saudi economy and its ability to swiftly scale towards recovery in the aftermath of COVID-19 triggered challenges.”

“Despite having gone to market under the ‘new normal’ circumstances, Bidaya was able to successfully capitalise on the low interest rate environment to achieve our objectives of optimising our debt maturity profiles and reducing our financing costs which will translate to better preservation of liquidity for the Company” he added.

Riyad Capital acted as the Arranger and Dealer with respect to the aggregate SR 400 million Sukuk issuance.

Bidaya’s Sukuk Program is aimed at maximizing the utilization of capital markets, resulting in diversification of the Company’s funding sources. It is an unprecedented initiative in the Saudi real estate market and in line with the Saudi Vision 2030 to facilitate homeownership for all Saudi citizens.

Public Investment Fund (“PIF”), along with a cross-section of prominent organizations