The Saudi Real Estate Refinance Company (SRC) has issued sukuk worth SAR2 billion to support lenders in the housing market, with the aim to further expand home ownership. The offer was guaranteed by KSA's Ministry of Finance.
The 10-year sukuk has a fixed profit rate of 3.04% and was marketed to Saudi institutional investors. The offer was oversubscribed 2.5 times.
Fabrice Susini, CEO of SRC, which is wholly owned by the Public Investment Fund (PIF), said: "The very positive reception in the market for our sukuk demonstrates strong confidence in the Saudi housing market and economy, and robust investor support for our business model as home ownership continues to increase. The funding raised will enable us to expand our relationships with home finance lenders, as Saudi Arabia moves closer to its target of achieving 70% home ownership among Saudi nationals by 2030."
Susini added: "Our latest sukuk issuance also adds further depth to the Saudi fixed income market in line with the goals of the Financial Sector Development Program (FSDP) as part of Vision 2030."
SRC's new sukuk was issued under its SAR10 billion Sukuk Programme, under which SRC can issue sovereign-guaranteed instruments targeting local investors. Its first sukuk offerings under the programme were issued in March 2021 in two tranches of seven and 10 years respectively, totalling SAR4 billion.