SRC doubles domestic Sukuk program to SAR 20 bln

Logo of Saudi Real Estate Refinance Co. (SRC)

The Saudi Real Estate Refinance Co. (SRC) announced doubling the total size of its SAR- denominated Sukuk program, guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance, to SAR 20 billion.

SRC also completed the fifth tranche under a SAR 3 billion Sukuk issuance program.

This came within the completion of its SAR 10 billion issuance over 12 months, offered at a fixed rate over a tenor of up to 10 years.

The fifth tranche, which was offered to institutional investors, attracted notable demand. It was 1.27x oversubscribed, despite highly-challenging market conditions.

CEO Fabrice Susini indicated that the overwhelming turnout underpinned investors’ confidence in the company's business model as well as the Kingdom’s housing industry and the financial market.

The raised funds will also enable SRC to deliver its main mission, increase market liquidity, support financiers, achieve stability in the Saudi mortgage market and accelerate homeownership growth in the Kingdom.