Amended Contractors Classification Law regulations set criteria for dividing major projects    Saudi Arabia emerges global leader in charitable and relief work with over SR528 billion in aid    20,882 violators of residency, border security, and labor laws arrested in a week    Saudi Arabia to head Arab Experts Group on Counter-Terrorism    Over 47,000 transport violations detected during 340,000 TGA inspections in August    Israel orders Gaza City evacuation, bombs high-rise towers    Modi welcomes Trump's remarks on India-US ties despite tariff tensions    British lawmakers urge boycott of Israeli President Herzog's visit    Saudi Arabia condemns Israeli calls for Palestinian displacement, backs Egypt's stance    Saudi Arabia's digital sector grows to 389,000 workers with record female participation    Riyadh Metro adjusts start time to 5:30 AM to serve commuters and students    Mike Tyson and Floyd Mayweather Jr. set to meet in exhibition boxing match in 2026    Gamers frustrated as Hollow Knight: Silksong crashes stores on launch    'My mother was my shelter and storm': Arundhati Roy on her fierce new memoir    HONOR to participate in Global Symposium for Regulators 2025 in Saudi Arabia    Restored Big Ben tower up for architecture award    NVIDIA GeForce RTX 50 Series laptops redefine learning, creating and gaming    Al Ahli secure Flamengo starlet Matheus Gonçalves in long-term deal through 2027    Al Hilal sign Turkish defender Yusuf Akcicek on €22m deal until 2029    Al Qadsiah sign German midfielder Julian Weigl to strengthen defensive midfield    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



SRC issues SAR 4 billion sovereign guaranteed Sukuk under a program of SAR 10 billion, provides liquidity to the Saudi housing market
Published in Saudi Press Agency on 09 - 03 - 2021

Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund (PIF), announced today the successful completion of the dual tenor SAR 4 billion (approx. USD 1.067 billion) Sukuk issuances.
The issuance is part of the newly launched SAR 10 billion Saudi-Riyal Sukuk program under which SRC will issue sovereign-guaranteed Sukuk targeting local investors. Over 30% of the issuance was subscribed by a mix of asset managers, pension fund, government funds, and insurance companies.
The SAR denominated issuance by SRC was offered in the seven and 10 year tenors. The issuances were a private offering to Saudi-based institutional investors attracting an orderbook in excess of SAR 8 billion which represents an oversubscription of 2.15 times. This underscores the investor confidence in the strength of the Saudi housing market which witnessed an increase in homeownership from 45% in 2017 to 62% in 2020.
Majed Al-Hogail, the Minister of Municipal, Rural Affairs and Housing and Chairman of SRC, said, "The successful Sukuk issuance demonstrates confidence among the investor community and trust in a robust housing market in the Kingdom and more broadly a resilient Saudi economy. The favorable cost of funding for SRC ultimately translates to an ecosystem where mortgages are more affordable and accessible to Saudi families. The Sukuk program brings us one step closer to achieving the strategic objectives of the housing program under Vision 2030."
"The completion of issuances by SRC under the new Sukuk program marks an important step towards the development of a robust secondary mortgage market and the wider housing sector in the Kingdom," Fabrice Susini, CEO of SRC.
"Our role in sustaining a healthy housing market is further validated by the strong investor interest in our issuance which helps achieve our funding objectives. The latest sovereign-guaranteed offering, underpinned by favorable cost of funding and terms, will further provide liquidity to the Saudi housing market that helps our citizens climb the housing ladder. This issuance will also contribute to the realization of the Public Investment Fund's strategy, a key driver in promoting the growth of the Saudi economy and diversifying sources of income by launching new sectors, including a secondary market for real estate financing."
Faisal Qadri, Managing Director, Head of Debt Capital Markets & Structured Finance, HSBC Saudi Arabia stated: "This is yet another groundbreaking achievement for SRC, and stands as a testament of the confidence local investors have in this fast emerging name which is playing a critical role in the development of the housing sector. The growing presence and importance as a catalyst in the housing sector is demonstrated by SRC's ability to attract an investor orderbook in excess of SAR 8 billion."
HSBC Saudi Arabia acted as the Sole Arranger on the establishment of the Sukuk program and as a Sole Lead Coordinator, Sukukholders' Agent and Payment Administrator on the issuances under the program. Aljazira Capital, HSBC Saudi Arabia, and Saudi Fransi Capital acted as Joint Lead Managers and Bookrunners on the issuances under the programmer.
SRC was established by the Public Investment Fund in 2017 to be the pillar of Saudi Arabia housing market by acting as a catalyst for accessible and affordable home financing solutions.


Clic here to read the story from its source.