Saudi Real Estate Refinance Co. raises $2bn in debut international sukuk.
The Saudi Real Estate Refinance Co., a Public Investment Fund subsidiary, has priced its first international sukuk issuance, raising $2 billion, boosting the local economy and attracting foreign investment.
SRC’s sukuk issuance supports Saudi Arabia’s Vision 2030 goals, including expanding the mortgage market, promoting homeownership, and attracting global investment.
The sukuk, structured in two tranches with three- and ten-year maturities, is part of SRC’s $5 billion international sukuk program. The issuance will be listed on the International Securities Market of the London Stock Exchange, strengthening Saudi Arabia’s connection to global capital markets and enhancing liquidity in the Kingdom’s mortgage finance sector.
Majid Al-Hogail said the successful listing underscores Saudi Arabia’s commitment to developing its housing finance ecosystem.
He highlighted Saudi Arabia’s ambitious plans to expand the mortgage finance sector to SR1.3 trillion ($346.6 billion) by 2030, up from SR800 billion in 2024 and just SR200 billion in 2018.
The minister said mortgage financings now represent 23 percent of total bank assets, aligning with Vision 2030’s 70 percent homeownership rate target by the end of the decade. By the end of 2023, the homeownership rate had already reached 63.7 percent, surpassing initial projections.
Source: ARABNEWS
