Saudi Real Estate Refinance Plans First International Dollar-Denominated Sukuk Issuance Later in 2020

Fabrice Susini, Chief Executive Officer of Saudi Real Estate Refinance Co (SRC) announced SRC’s plans for the issuance of a USD-denominated Sukuk of up to USD 5 billion by the end of 2020. The impending Sukuk issuance will mark SRC’s foray into international markets.

Susini commented on the size of the mortgage market in Saudi Arabia which stood at SAR 240 billion by the end of the first quarter of 2020, expecting this to grow to a value of SAR 800 billion by 2028. SRC purchases mortgage portfolios of banks and companies to support mortgage origination. Susini added that since commencing its operations, SRC has contributed to raising home ownership rates in Saudi Arabia to 62% in 2020 from 47% in 2017. SRC t...