Press Release

Completion of SAR 3 billion Sukuk Issuance under the upsized Sukuk program

Riyadh, Saudi Arabia, 11 Oct 2022 – The Saudi Real Estate Refinance Company (SRC) wholly owned by the Public Investment Fund (PIF), announced doubling the total size of its Saudi-Riyal denominated Sukuk program guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance from SAR 10 billion to SAR 20 billion. This follows the highly successful completion of its SAR 10 billion issuances over 12 months which offered in a fixed rate format tenor up to10 years.

As part of the increased program, SRC completed its fifth series under the program amounting to SAR 3 billion Sukuk issuance, offered in a fixed rate format across a tenor of 10 years, which was distributed to institutional investors. The deal attracted notable demand resulting in an oversubscription of the offering despite highly challenging market conditions.

Fabrice Susini, CEO of SRC, said: “The positive market reaction towards our recent tranche of issuance shows the ongoing momentum built as part of the successful completion of our first domestic Sukuk program in a record timeframe. Despite volatile market conditions, the various tranches under the initial program were significantly oversubscribed which demonstrates the valuable investor trust in our business model and the Kingdom’s housing and financial market.

As a frequent Sukuk issuer, we are proud of the strong track record we have established over the past few years and are determined to continue to support the development of the financial sector in the Kingdom by offering new and alternative financial solutions that attract local and international investments.

The funding raised will also enable us to deliver on our main mission to increase market liquidity and support originators and lenders thereby stabilizing the Saudi mortgage market and accelerating homeownership growth in the Kingdom.”

SRC’s Saudi-Riyal-denominated Sukuk program supports the strategic objectives of Vision 2030’s Financial Sector Development Program and Housing Program.

HSBC Saudi Arabia acted as the sole lead coordinator on the latest offering while the joint lead managers are Aljazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, and SNB Capital.