Riyadh, Saudi Arabia: – The Saudi Real Estate Refinance Company (SRC) wholly owned by the Public Investment Fund (PIF), announced doubling the total size of its Saudi-Riyal denominated Sukuk program guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance from SAR 10 billion to SAR 20 billion. This follows the highly successful completion of its SAR 10 billion issuances over 12 months which offered in a fixed profit rate format across a tenor up to10 years.

As part of the increased program, SRC completed its fifth series under the program amounting to SAR 3 billion Sukuk issuance, offered in a fixed profit rate format across a tenor of 10 years, which was distributed to institutional investors. The deal attracted notable demand resulting in an oversubscription of the offering by 1.27 times, at a fixed profit rate, despite highly challenging market conditions.

Fabrice Susini, CEO of SRC, said: “The positive market reaction towards our recent tranche of issuance shows the ongoing momentum built as part of the successful completion of our first domestic Sukuk program in a record timeframe. Despite volatile market conditions, the various tranches under the initial program were significantly oversubscribed, which demonstrates the valuable investor trust in our business model and the Kingdom’s housing and financial market.

As a frequent Sukuk issuer, we are proud of the strong track record we have established over the past few years and are determined to continue to support the development of the financial sector in the Kingdom by offering new and alternative financial solutions that attract local and international investments.

The funding raised will also enable us to deliver on our main mission to increase market liquidity and support originators and financiers thereby stabilizing the Saudi mortgage market and accelerating home ownership growth in the Kingdom.”

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

HSBC Saudi Arabia acted as the sole lead coordinator on the latest offering, while the joint lead managers are Aljazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, and SNB Capital.

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About Saudi Real Estate Refinance Company (SRC):

Fully owned by the Public Investment fund (PIF), the Saudi Real Estate Refinance Company (SRC) was established in 2017, after obtaining a license to operate in the secondary real estate market from the Saudi Central Bank, to transform the local housing market.

SRC enables individuals and entities interested in direct or indirect real estate financing to increase and diversify the origination of long-term fixed-rate (LTFR) products.

As one of its primary roles, SRC provides banks and real estate finance companies with liquidity or capital relief, enabling growth in the home financing sector to increase the percentage of citizens’ home ownership. SRC will subsequently aggregate and packages home financing portfolios into mortgage-backed securities to be sold to domestic and international investors.

With a world-class management team drawing from international best practices, SRC is uniquely positioned to become the partner of choice for banks and non-bank financiers in the Kingdom.

SRC is rated ‘A’ (positive) by Fitch Ratings and ‘A2’ (stable) by Moody’s Investors Service.

For more information, please visit: http://srco.com.sa/

For press inquiries, please contact:
Saudi Real Estate Refinance Company (SRC)    
info@srco.com.sa                                                                             

Joann Joseph, Instinctif Partners                                                                                  src@instinctif.com