New financing raised will allow mortgage originators to offer lower mortgage rates and support the housing market, making borrowing more accessible to buyers
Show helps deepen Saudi capital markets as part of financial sector development agenda
RIYAD from Saudi Arabia, 12 December 2021 / PRNewswire / – The Saudi Real Estate Refinance Company (SRC) has successfully completed the issuance of a SAR 2 billion Sukuk to support lenders in the housing market, with the aim of further expanding homeownership by making it more affordable. The Sukuk was guaranteed by the Kingdom of Saudi Arabia by the Ministry of Finance.
The 10-year Sukuk was issued at a competitive fixed profit rate of 3.04% marketed to Saudi institutional investors, the deal was 2.5 times oversubscribed
Fabrice Susini, CEO of SRC, which is 100% owned by the Public Investment Fund (PIF), said: “The very positive market reception for our Sukuk demonstrates strong confidence in the Saudi housing market and economy, and strong investor support for our business model. as homeownership continues to increase. The funds raised will allow us to expand our relationships with lenders Saudi Arabia is approaching its goal of achieving 70% home ownership among Saudis by 2030. ”
“Our latest issue from Sukuk also adds depth to the Saudi fixed income market, in line with the goals of the Financial Sector Development Program (FSDP) as part of Vision 2030.”
CBC’s new Sukuk series was released under its SAR 10 billion Sukuk program established earlier this year, under which the CBC has the capacity to issue sovereign guaranteed instruments targeting local investors. Its first sukuk offerings under the program were issued in March 2021 in two installments of 7 and 10 years totaling SAR 4 billion.
The SRC’s refinancing activities for lenders help develop an active secondary housing finance market in the Kingdom that supports the efficiency and stability of the primary housing market.
The principal coordinator of the transaction was HSBC Saudi Arabia and the joint lead managers were AlJazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, Saudi Fransi Capital and SNB Capital.
About Saudi Real Estate Refinance Company (SRC):
Fully owned by the Public Investment Fund (PIF), the Saudi Real Estate Refinance Company (SRC) was established in 2017, after being licensed to operate in the secondary real estate market by the Saudi Central Bank, with the aim of transform the housing market.
SRC allows individuals and entities interested in direct or indirect real estate financing to increase and diversify the origination of long-term fixed rate (LTFR) products.
As part of one of its main roles, the CBC provides banks and real estate finance companies with liquidity or capital relief, thereby enabling the growth of the real estate finance industry to increase entry rates. ownership among Saudi citizens. SRC will subsequently consolidate and consolidate the real estate finance portfolios into mortgage-backed securities for sale to national and international investors.
With a world-class management team drawing on international best practices, SRC is uniquely positioned to become the partner of choice for the Kingdom’s banks and non-bank lenders.
The SRC is rated “A” (stable) by Fitch Ratings and “A2” (stable) by Moody’s Investors Service.
For more information, please visit: http://srco.com.sa/
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SOURCE Saudi Real Estate Refinancing Company