Saudi Real Estate Refinance Company (SRC) issues SAR 2 billion Sukuk, under its existing Sukuk Programme, to increase its support for home ownership in the Kingdom of Saudi Arabia
New financing will allow mortgage lenders to provide lower mortgage rates and support the housing market, making borrowing more accessible to buyers
Issue contributes to deepening Saudi capital markets under the Financial Sector Development Program
Riyadh, Saudi Arabia, December 12, 2021 / PRNewswire / – The Saudi Real Estate Refinance Company (SRC) has successfully completed the issue of an A. 2 billion SAR Sukuk supports lenders in the housing market with the aim of growing home ownership by making it more affordable. The sukuk was guaranteed by the Kingdom of Saudi Arabia by the Treasury.
Logo of the Saudi real estate refinancing company (PRNewsfoto / Saudi refinancing company)
The 10 year old Sukuk was issued at a competitive fixed win rate of 3.04% and marketed to Saudi institutional investors, the deal oversubscribed 2.5 times
Fabrice Suzani, CEO of SRC, which is wholly owned by the Public Investment Fund (PIF), said: “The very positive market response for our Sukuk shows strong confidence in the Saudi housing market and economy, as well as solid support of investors for our business model. ”As home ownership continues to grow. The funds raised will enable us to develop our relationships with mortgage lenders Saudi Arabia is nearing its target of 70% home ownership by Saudi nationals by 2030. “
“Our latest Sukuk issue also adds depth to the Saudi bond market in line with the goals of the Financial Sector Development Program (FSDP) as part of Vision 2030.”
The new Sukuk series from SRC was under his 10 billion SAR The Sukuk program was set up earlier this year, under which SRC has the opportunity to issue government-guaranteed instruments to local investors. His first Sukuk bids under the program were issued in March 2021 in two tranches of 7 and 10 years in total SAR 4 billion.
SRC’s refinancing activities for lenders help develop an active secondary home equity financing market in the kingdom that supports the efficiency and stability of the primary housing market.
The story goes on
The lead coordinator for the transaction was HSBC Saudi Arabia and the joint lead managers were AlJazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, Saudi Fransi Capital and SNB Capital.
About the Saudi Real Estate Refinance Company (SRC):
The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), was founded in 2017 after the Saudi Central Bank obtained a license to operate in the secondary real estate market with the aim of serving the local real estate market .
SRC enables natural and legal persons interested in direct or indirect real estate financing to increase and diversify the procurement of long-term fixed income products (LTFR).
As one of its main roles, SRC provides banks and real estate financiers with liquidity or capital relief, thus enabling the home finance sector to grow in order to increase home ownership rates among Saudi citizens. SRC will then aggregate the home finance portfolios and bundle them into mortgage-backed securities that will be sold to domestic and international investors.
With a world-class management team based on international best practices, SRC is uniquely positioned to become the preferred partner for banks and non-bank lenders in the UK.
SRC is rated “A” (stable) by Fitch Ratings and “A2” (stable) by Moody’s Investors Service.
For more information, please visit: http://srco.com.sa/
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SOURCE Saudi real estate refinancing company