Bidaya Home Finance successfully issues an aggregate of SR400 mln 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 Program 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.

“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” Bidaya,s CEO Mazin Al Ghunaim said.

“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 elaborated.

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.

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About Bidaya:

Bidaya was founded and launched as a joint stock company with a total paid-up capital of SR900 million.

Headquartered in Riyadh, Bidaya is licensed under the Saudi Central Bank (“SAMA”)

and offers a suite of Shari’ah-compliant products to end-users and partners.

Bidaya has the preeminent composition of shareholders in the home finance space. Its shareholders include the Islamic Corporation for the Development of the Private Sector (“ICD”), a member of the Islamic Development Bank Group) and the Public Investment Fund (“PIF”), along with a cross-section of prominent organizations.