Saudi Real Estate Refinance Company successfully completes Sukuk issuance of SAR3.5 billion
Staff Report,
Dubai, UAE
The real estate finance subsidiary of Public Investment Fund (PIF), Saudi Real Estate Refinance Company (SRC), has successfully completed its latest Sukuk issuance of SAR3.5 billion. The company offered the issuance in five and seven year dual tenors, marking the completion of the final two tranches under its SAR20 billion government-guaranteed Sukuk Programme.
Fabrice Susini, CEO of SRC, said: “The issuance witnessed interest from the institutional investor community, reinforcing the confidence in the local market and in SRC’s operational framework; it also affirms SRC’s pivotal role in contributing to Vision 2030 Housing Program as well as to the Financial Sector Development Program”.
He added: “SRC’s consistent Sukuk issuances reinforce our commitment to taking part in financial sector development in Saudi Arabia. Through these issuances, SRC is contributing to diversifying funding for the real estate sector and to driving growth. By providing banks and real estate finance companies with liquidity, SRC enables further development in the home financing sector increasing homeownership rates among Saudi citizens”.
According to SRC, HSBC acted as lead coordinator on the latest offering, while the joint lead managers are Aljazira Capital, HSBC Saudi Arabia, Alrajhi Capital, and SNB Capital.
Earlier this year, SRC received high credit ratings and is rated ‘A+’ (stable) by Fitch Ratings, A- (stable) by S&P Global and ‘A2’ (positive) by Moody’s Investors Service.
SRC was established in 2017 by the Public Investment Fund after obtaining a license from Saudi Central Bank to operate in the market and as part of the government initiatives to support the Vision 2030 Housing Program, to be a pillar and a major catalyst for the growth and sustainability of housing finance in the Kingdom and establishing a secondary real estate market.
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