SRC plans to issue $1bn in sukuk by end of 2021
Company had last month sold $1.06bn in a two-tranche private placement of sukuk, guaranteed by the Saudi Finance Ministry
Saudi Real Estate Refinance Company (SRC) plans to issue up to $1 billion in sukuk (Islamic bonds) by the year-end, it has been revealed.
According to a Reuters report, the company had last month sold $1.06 billion in a two-tranche private placement of sukuk, guaranteed by the Saudi Finance Ministry. This will enhance the provision of liquidity in the real estate finance market and contribute positively to reducing the cost of real estate financing for Saudi citizens who wish to own adequate housing, the report added.
A wholly owned unit of the Kingdom’s sovereign fund, Public Investment Fund, SRC was set up to increase home ownership amongst Saudi nationals.
SRC has a portfolio of loans of $1.73 billion at the end of 2020. It has been assigned an ‘A’ credit rating by Fitch Ratings before a planned issuance of international bonds, Saudi TV channel Al Arabiya has reported.
The company plans to issue between $500 million and $1 billion in bonds by the end of this year, likely with a tenor of between 10 and 12 years, it concluded.
