The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), has successfully completed its latest Sukuk issuance of SAR3.5 billion. This marks the sixth tranche under the upsized Saudi-Riyal-denominated 20 billion Sukuk program, guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance.

The latest tranche demonstrates strong investor confidence in SRC and the Kingdom’s economy. The issuance will enable SRC to keep mortgage rates at low levels. SRC recently obtained an A- (stable) credit rating from S&P Global and was upgraded by Fitch earlier this year to A+ (stable), while Moody’s Ratings upgraded its outlook on SRC to “Positive”.

SRC CEO Fabrice Susini said: “The positive response from investors to SRC’s latest Sukuk issuance is a clear testament to the strength of the Kingdom’s housing market and economy. As SRC continues to refinance existing financings for financiers, we are proud to contribute to the development of a robust secondary home financing market that supports the efficiency and stability of the primary housing market. This funding will enable us to continue increasing market liquidity and supporting originators and financiers, ultimately promoting stability in the Saudi mortgage market and accelerating homeownership growth in the Kingdom.”

Alrajhi Capital and HSBC Saudi Arabia acted as joint lead coordinators of the latest offering, while the joint lead managers are Aljazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, and Alinma Investment Company.

SRC’s Saudi-Riyal-denominated Sukuk program supports the strategic objectives of Vision 2030 Financial Sector Development Program and Housing Program.

The Saudi Real Estate Refinance Company (SRC) was established in 2017 with the aim of helping transform the local housing market. SRC obtained a license from the Saudi Central Bank to operate in real estate refinancing through the secondary market.