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Saudi Real Estate Refinance Company (SRC) has attracted more than $16.75 billion in orders for its US dollar-denominated Reg S bond sale, allowing the issuer to tighten the pricing from IPTs.
Final spreads for the $1.25 billion 5.5-year tranche was US Treasuries plus 85bps, narrowing from IPTs in the T+115bps area.
The $1.50 billion 10-year tranche was priced at UST+95, from IPTs in the T+125 area.
The orderbook exceeded $8 billion for the 5.5-year tranche and $8.75 billion for the 10-year tranche, excluding joint lead manager interest.
The issuance carries a government guarantee.
SRC, a unit of Saudi Arabia’s Public Investment Fund, was established to support the development of the kingdom’s housing finance market by providing liquidity to residential mortgage lenders and promoting home ownership.
The transaction reveals continued strong investor demand for Saudi-related debt offerings, with issuers benefiting from robust appetite for high-quality Gulf credit.
(Writing by Brinda Darasha; editing by Bindu Rai)
