RIYADH: The Saudi Real Estate Refinance Co., which is fully owned by the Public Investment Fund, has successfully closed its SR10 billion ($2.7 billion) sukuk program. 

The first tranche of the domestic sukuk program was launched in March 2021, offering seven- and 10-year dual tenors to Saudi-based investors. This initial tranche was 2.15 times oversubscribed, attracting in excess of SR8 billion investment.

The second tranche of SR2 billion sukuk that was offered in December 2021 with a competitive fixed profit rate of 3.04 percent was also oversubscribed by 2.5 times. 

The lead coordinator on the series offering was HSBC Saudi Arabia and the joint lead managers were AlJazira Capital, HSBC Saudi Arabia, Riyad Capital, and SNB Capital.

“The market’s positive response to our SR10 billion domestic sukuk program, as demonstrated in the series of oversubscribed issuances within 12 months from the offering of the first series, is a testament to the valuable trust investors have placed in SRC and their strong confidence in the Kingdom’s housing market and economy,” said SRC CEO Fabrice Susini in a press statement. 

The company said its main objective is to provide access to cheaper home financing loans for Saudi citizens while widening the borrower’s base.

“We will continue to work closely with our partners including the banks, originators, and lenders as well as investors to regularly offer the sukuk program to assist with further stabilizing the Saudi mortgage market and accelerate home ownership in the Kingdom in line with Vision 2030 goals,” he added.