Saudi Real Estate Refinance Company (SRC), a Public Investment Fund (PIF) company, announced the completion of the pricing of the first international Sukuk issuance with a government guarantee worth USD 2 billion (approximately SAR 7.5 billion) in two tranches with maturities of three years and ten years.The issuance was priced in two tranches with maturities of three years and ten years, with the coverage ratio exceeding 6 times the total issuance with the participation of more than 300 institutional investors, as part of the US$5 billion international Sukuk program, which was listed on the International Securities Market (ISM) on the London Stock Exchange.

The issuance comes as part of a US$5 billion international Sukuk program listed on the International Securities Market (ISM) on the London Stock Exchange (LSE). The issuance is backed by strong credit ratings, reinforcing the company's position and role in the real estate finance market. The issuance will be listed on the International Securities Market “ISM” on the London Stock Exchange, contributing to enhancing market liquidity and supporting the real estate finance system in the Kingdom of Saudi Arabia.

Listing the International Sukuk Program on the London Stock Exchange

On this occasion, the Minister of Municipalities and Housing and Chairman of the Board of Directors of Saudi Mortgage Refinance Company Mr. Majid bin Abdullah Al-Hogail said that the successful listing of the international Sukuk program on the London Stock Exchange comes as an extension of the great support provided by the wise leadership - may God protect them - to strengthen the real estate financing system and provide innovative financing solutions for citizens.

"The listing of the international Sukuk program on the London Stock Exchange represents a qualitative leap in the integration of the Saudi economy with international markets and is a pivotal step to attract foreign direct investment, enhance liquidity and develop the secondary market for real estate financing in the Kingdom," Al-Hogail said, adding that the issuance supports the sustainability of the housing sector and the achievement of the housing program targets within Saudi Vision 2030 by expanding the scope of financing solutions and providing more efficient financing channels.

He added that the issuance supports the sustainability of the housing sector and the achievement of the housing program targets within Saudi Vision 2030 by expanding the scope of financing solutions and providing more efficient financing channels.

His Excellency added: ”The Kingdom expects the real estate finance sector to grow by SAR 500 billion by 2030, reaching SAR 1,3 trillion Saudi riyals, where the volume of real estate financing in the Kingdom is about SAR 800 billion in 2024, up from SAR 200 billion in 2018, pointing out that these financings constitute 23% of the total assets in banks“ portfolios, as this constitutes a real estate momentum driven by the mega projects implemented by the Kingdom, in addition to the targets of Saudi Vision 2030, which set the percentage of home ownership by Saudi families at 70% at the end of the current decade, and the percentage increased to 63 by the end of 2023,7%, exceeding the vision's target for the same year, which was set at 63%.

For his part, Majeed Al-Abduljabbar, CEO of the Saudi Real Estate Refinance Company, said that the listing of the international Sukuk program on the London Stock Exchange reflects the confidence of international markets in the Saudi economy and the stability of the financial sector in the Kingdom, which enhances the diversity of funding sources and supports the company's ability to provide sustainable financing solutions.”

Abduljabbar said. ”The listing of the Sukuk program on the London Stock Exchange strengthens the company's global presence, opens the way for new strategic partnerships and the development of the real estate finance market, and attracts quality investments that support sustainable development goals. The listing is in line with the company's strategy to attract a diverse base of international investors, strengthen its position as a key pillar in the real estate finance market, benefit from the global financial environment and expand its influence in international markets."

Abduljabbar pointed out that the successful pricing of the Sukuk program on the London Stock Exchange reflects the confidence of international markets in the Saudi economy and the stability of the Kingdom's financial sector. The successful completion of the pricing of these international Sukuk reflects SARRC's growing role in attracting foreign direct investment, contributing to enhancing liquidity, supporting the secondary market for real estate finance, providing innovative financing solutions, and accelerating the growth of the housing sector in the Kingdom in order to achieve the targets of the housing and financial sector development programs.

<As part of its strategic objectives, SREC seeks to attract a diversified base of international investors by expanding its Sukuk program to include international markets, and enjoys strong credit ratings from international rating agencies, including: Fitch (A+) - Stable, Standard & Poor's (A)
- Positive, and Moody's (A2) - Positive, giving it a strong position to launch its first issuance on the global stage, compliant with international Sukuk market standards and best practices in Islamic finance.

It is worth mentioning that the Saudi Real Estate Refinance Company was established by the Public Investment Fund in 2017 with the aim of developing the real estate finance market in the Kingdom, after obtaining a license from the Saudi Central Bank to operate in the field of real estate refinancing. The Saudi Refinance Company plays a key role in achieving the targets of the housing program within the Kingdom's Vision 2030 to increase the rate of home ownership among Saudi citizens, by providing liquidity to financiers to enable them to provide affordable housing finance to individuals, and working closely with partners to support the housing system in the Kingdom.

Saudi Real Estate Refinance Company plays a key role in achieving the objectives of the housing program as part of the Kingdom's Vision 2030.