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PIF-owned SRC completes $933m sukuk

According to the report, sukuk issuances are expected to range between US$160-170 billion in 2024, boosting sector assets' growth in 2024.
  • The PIF established the Saudi Real Estate Refinance Company in 2017 for the growth and sustainability of residential real estate financing in the kingdom.
  • This was the sixth tranche within the program denominated in Saudi riyals and supported by government guarantees.

Riyadh, Saudi Arabia — The Saudi Real Estate Refinance Company (SRC), which is wholly owned by the Public Investment Fund (PIF), said Tuesday it has completed the issuance of a new tranche of sukuk worth SAR 3.5 billion ($933 million).

The sukuk is part of the SAR 20 billion local sukuk program, making it the sixth tranche within the program denominated in Saudi riyals and supported by government guarantees.

The PIF established the Saudi Real Estate Refinance Company in 2017 for the growth and sustainability of residential real estate financing in the kingdom, after obtaining a license from the Saudi Central Bank to operate in the secondary market for real estate financing.

In October last year, the company had doubled the total size of its Saudi-Riyal denominated Sukuk program guaranteed from SAR 10 billion to SAR 20 billion.

Fabrice Susini, CEO of SRC, said that the company is witnessing a “remarkable response from investors to its sukuk program, which confirms investor confidence, the strength of the housing sector and its high investment attractiveness”.

“By providing innovative solutions for real estate refinancing, we confirm the company’s keenness to continue developing the real estate finance market in the Kingdom, providing liquidity, and supporting financing entities to achieve further growth in home ownership rates for Saudi families in the kingdom,” he added.
Al Rajhi Capital and HSBC were the lead coordinators of the Sukuk offering, while Al Jazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital and Alinma Investment Company managed the offering.