The Saudi Real Estate Refinance Company Completes SAR3.5 … – Off Plan Property Exchange

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The Saudi Real Estate Refinance Company (SRC), a wholly owned unit of Saudi sovereign wealth fund PIF (Public Investment Fund), has successfully completed its latest sukuk issuance, amounting to SAR3.5 billion ($932 million). This achievement marks the final two tranches under SRC’s SAR20 billion government-guaranteed sukuk programme, offering tenors of 5 and 7 years.

CEO Fabrice Susini expressed his satisfaction with the level of interest shown by the institutional investor community, which not only reinforces confidence in the local market but also affirms SRC’s significant role in contributing to Saudi Arabia’s Vision 2030 Housing Program and the Financial Sector Development Program. Through its consistent sukuk issuances, SRC displays a strong commitment to participating in the financial sector’s development in the country.


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By diversifying funding for the real estate sector and providing liquidity to banks and real estate finance companies, SRC plays a critical role in driving growth and further development in the home financing sector. These efforts contribute to increased homeownership rates among Saudi citizens, aligning with the goals of Vision 2030.

HSBC acted as the lead coordinator for the latest sukuk issuance, with Aljazira Capital, HSBC Saudi Arabia, Alrajhi Capital, and SNB Capital serving as joint lead managers. SRC’s high credit ratings, including ‘A+’ by Fitch Ratings, ‘A-‘ by S&P Global, and ‘A2’ by Moody’s Investors Service, further reinforce its credibility in the market.

Established in 2017 by the Public Investment Fund, SRC received a license from the Saudi Central Bank to operate in the market. It operates as part of the government’s initiatives to support the Vision 2030 Housing Program, serving as a pillar and catalyst for the growth and sustainability of housing finance in the Kingdom. SRC also contributes to the establishment of a secondary real estate market.

As the demand for housing continues to grow in Saudi Arabia, SRC’s efforts in providing accessible financing options are crucial for achieving the nation’s long-term development goals. By facilitating the flow of capital into the real estate sector, SRC helps create opportunities for individuals and contributes to the overall economic growth of the country.

FAQs:

1. What is a sukuk?

A sukuk is an Islamic financial certificate, similar to a bond in conventional finance, that adheres to Islamic principles and is used to raise capital.

2. What is the Vision 2030 Housing Program?

The Vision 2030 Housing Program is a Saudi Arabian initiative aimed at providing affordable housing and increasing homeownership rates among Saudi citizens.

3. What is the role of SRC in the housing finance sector?

The Saudi Real Estate Refinance Company (SRC) plays a pivotal role in the growth and sustainability of housing finance in Saudi Arabia. It provides liquidity to banks and real estate finance companies, enabling the development of the home financing sector and increasing homeownership rates.

4. Who are the joint lead managers for SRC’s sukuk issuance?

The joint lead managers for SRC’s latest sukuk issuance are Aljazira Capital, HSBC Saudi Arabia, Alrajhi Capital, and SNB Capital.

Sources:
– TradeArabia News Service: https://www.tradearabia.com/news/CONS_402754.html

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