SRC refinances real estate portfolios worth SAR 28 bln, plans international sukuk

Majeed Abduljabbar, Executive Vice President of Business and Markets

Saudi Real Estate Refinance Co. (SRC) provided refinancing for over SAR 28 million for real estate portfolios and granted SAR 8.4 billion credit facilities to financing companies, which were recycled over four years, Al-Eqtisadiah newspaper reported, citing Majeed Abduljabbar, Executive Vice President of Business and Markets.

The total value of portfolios refinanced by SRC since inception stood at nearly SAR 19.5 billion, with most of Saudi banks, mortgage financiers and the relevant government authorities.

The total number of these authorities reached 13, while work is ongoing with other seven, Abduljabbar added.

SRC issued SAR 6.7 billion worth of sukuk since 2018. It is planning an international sukuk program after obtaining the required regulatory approvals. The program is part of the company’s strategy to diversify financing sources.

The company will issue domestic or foreign sukuk this year, Abduljabbar affirmed, noting that SRC’s business model requires continuous issuance of sukuk. SRC has two domestic sukuk programs estimated at SAR 21 billion.