‏ ‏SRC completes issuance, offering of SR3.5 bln worth of sukuk

‏Saudi Real Estate Refinance Company “SRC” – wholly owned by the Public Investment Fund – announced its success in completing its issuance of a new tranche of sukuk with a value of 3.5 billion riyals, as part of the local sukuk program amounting to 20 billion riyals. The sixth within the program is denominated in Saudi riyals and backed by government guarantees.

The success of this offering spotlights the confidence of investors in the local market and the company’s business model, as well as its active role in the real estate financing market in the Kingdom and its contribution to achieving the goals of Saudi Vision 2030 programs.

In turn, the company’s CEO, Fabrice Susini, confirmed that the company is witnessing a remarkable response from investors to its sukuk program, which confirms the confidence of investors and the strength of the housing sector and its high investment attractiveness. ‏

He added: “By providing innovative solutions for real estate refinancing, we affirm the company’s keenness to continue developing the real estate financing market in the Kingdom, providing liquidity, and supporting financing agencies to achieve more growth in home ownership rates for Saudi families in the Kingdom.”

Al-Rajhi Capital and HSBC were the main coordinators for the sukuk offering, while the offering was managed by Al-Jazira Capital, Al-Rajhi Capital, HSBC Saudi Arabia, Riyadh Capital, and Al-Inmaa Investment Company.

It is noteworthy that the Saudi Real Estate Refinance Company obtained a rating of (A +) (stable) from Fitch Agency, and a rating of (A2) (positive) from Moody’s, and a rating of (A-) (stable) by Standard & Poor’s. ‏

The Public Investment Fund established the Saudi Real Estate Refinance Company in 2017, to be a major pillar and catalyst for the growth and sustainability of residential real estate financing in the Kingdom, after obtaining a license from the Saudi Central Bank to operate in the secondary market for real estate financing.