Saudi Real Estate Refinance Supports Domestic Housing Sector with Largest Ever SAR 4 Billion Sukuk

Saudi Real Estate Refinance Company (SRC) has completed the issuance of SAR 4 billion (USD 1.067 billion) worth of Sukuk in two tenures. Encompassing a 7-year tranche of SAR 1 billion at 2.11% and a 10-year tranche of SAR 3 billion at 2.65%, the issuance was oversubscribed by 2.1 times. This issuance is a part of the newly launched SAR 10 billion SAR-denominated Sukuk programme, under which SRC will target local investors with sovereign-guaranteed Sukuk issuances. 

Why it matters?

According to SRC’s Chief Executive Officer, Fabrice Susini, SRC plays a key role in supporting Saudi Arabia’s housing market by providing liquidity to the primary originators, or the banks, and mortgage companies. This in turn, allows these institutions to provid...