Saudi Real Estate Refinance Company (SRC), a PIF company, has announced the successful pricing of its third international issuance of sukuk guaranteed by the Government of the Kingdom of Saudi Arabia, with an aggregate value of $2.75 billion.
The issuance comprises two tranches: a $1.25 billion with a 5.5-year tenor and a $1.5 billion tranche with a 10-year tenor.
The issuance attracted strong demand from regional and international institutional investors, with the 6.8x oversubscription driven primarily by international investors. The strong demand reflects robust investor confidence in Saudi debt instruments and reinforces SRC's position as a regular and trusted issuer in the international capital markets.
The Saudi group announced the increase of its International Sukuk Programme, listed on the International Securities Market (ISM) of the London Stock Exchange and supported by a government guarantee, from $5 billion to $10 billion.
The company launched its International Sukuk Programme in February 2025 with a total value of $5 billion. The Company successfully completed its inaugural issuance under the programme, raising $2 billion across two tranches with 3-year and 10-year maturities. Later that year, SRC completed a second issuance of $2.5 billion, also across two tranches with 3.5-year and 10-year maturities.
Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, said: âThe success of SRCâs third international sukuk issuance reflects the strong global confidence in the resilience of the Saudi economy and underscores the companyâs pivotal role in enhancing liquidity in the housing finance market and expanding the investor base. It also demonstrates our commitment to supporting the objectives of Saudi Vision 2030 by enabling Saudi families to own homes and by further developing the housing finance ecosystem in a way that strengthens social and economic stability.â
CEO Majeed Fahad Alabduljabbar said: âWe are pleased to complete the pricing of SRCâs third international sukuk issuance, which reflects the attractiveness of Saudi debt instruments to global investors, broadens our investor base, and contributes to the continued development of the Kingdomâs secondary mortgage market.â
The International Sukuk Programme has received strong credit ratings from leading international rating agencies, including Moody's (A1) and Fitch Ratings (A+), further strengthening SRC's position as one of the Kingdom's key enablers of the housing sector.-TradeArabia News Service
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