SRC Plans Issuance of up to USD 1 Billion in Sukuk By End-2021

According to media reports, Saudi Real Estate Refinance (SRC) intends to issue up to USD 1 billion in Sukuk by the end of 2021. SRC is a fully owned unit by Saudi Arabia’s sovereign fund, Public Investment Fund, and it was set up to raise the level of home ownership amongst citizens of the kingdom. The tenor of this issuance is likely to be between 10 and 12 years.

Why it Matters?

This issuance should elevate the provision of liquidity in the real estate finance market and make a positive contribution towards lowering the cost of real estate financing for citizens. It is also noteworthy that SRC benefits from a supportive government policy and does not have to pay Zakat.

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