The issuance comes within the SAR 10 billion Sukuk program

Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund (PIF), has announced the successful completion of a two-tranche SAR 4 billion Sukuk issuance.

SRC has announced the successful completion of a two-tranche SAR 4 billion Sukuk issuance.

The company explained in a press release today, that the issuance comes within the SRC Sukuk program worth SAR 10 billion, to issue Sukuk targeting local investors, and the issuance witnessed great demand from asset managers, insurance companies and government funds with coverage exceeding 30% of its value.

The company said in a press release today.

The completion of this phase of the Sukuk program is part of the Sukuk issued by the Saudi Real Estate Refinance Company in Saudi Riyal with a maturity period of 7 and 10 years, and the subscription orders recorded a wide turnout of more than 8 billion to reach the limit of requests to 2.15 times, reflecting investor confidence in the Saudi housing market, which witnessed an increase in home ownership rate exceeding 60% in 2020 from 47% in 2017.

The Sukuk was issued by the Saudi Real Estate Finance Company (SRRC).

His Excellency the Minister of Municipal and Rural Affairs and Housing and Chairman of the Board of Directors of the Saudi Real Estate Refinance Company, Mr. Majid bin Abdullah Al-Hogail, explained that the success of the Sukuk issuance reflects the confidence of investors in the housing market in the Kingdom and the resilience and strength of the Saudi economy, noting that the issuance contributes to enhancing liquidity and stability in the real estate finance market, which reflects positively on the cost of financing, thus facilitating Saudi families to own housing at the lowest cost, to achieve the strategic objectives of the housing program - one of the programs of the Kingdom Vision 2030 -.

Fabrice Sosini, CEO of the Saudi Mortgage Refinance Company, said that the successful completion of the issuance is an important step towards developing the secondary market and promoting the growth of the Saudi housing sector on a larger scale at the lowest cost, pointing out that the interest of investors and the great demand for the company's issues reinforces its role in maintaining a favorable housing market to achieve the company's objectives.

Fabrice Sosini

Susini pointed out that the latest offering backed by a government guarantee will provide more liquidity in the housing market to increase the rate of home ownership by citizens at an affordable cost, pointing out that this issue will contribute to the realization of the Public Investment Fund's strategy as a key driver to enhance the growth of the local economy and diversify sources of income by launching new sectors, including the secondary market for real estate financing.

Susini pointed out that the latest offering backed by a government guarantee will provide more liquidity in the housing market to increase home ownership by citizens at an affordable cost.

Faisal Qadri, General Manager and Head of Debt Markets and Structured Finance for HSBC in the Kingdom, emphasized that this is a pioneering achievement for the Saudi Real Estate Refinance Company and proof of investors' confidence in the company's role in developing the sector, stressing the importance of the company's role as a catalyst for attracting investors after it was able to HSBC Bank Saudi Arabia acted as the sole lead bookrunner for the SREC Sukuk program and led the arrangement and documentation of the issuance under the program, while Al Jazeera Capital and Saudi Fransi Capital acted as bookrunners and collectors.

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

The Public Investment Fund established the Saudi Real Estate Refinance Company in 2017.