-  Saudi Real Estate Refinance Company (SRC) Announces Pricing Completion of Its First International Sukuk Worth USD 2 Billion

The Saudi Real Estate Refinance Company (SRC) – one of the Public Investment Fund (PIF) companies – announced the pricing completion of its first international sukuk issuance, backed by a government guarantee, worth USD 2 billion (approximately SAR 7.5 billion) in two tranches with maturities of three and ten years. The issuance was oversubscribed by more than six times the total offer, with participation from over 300 investment institutions, and forms part of SRC’s USD 5 billion international sukuk program, listed on the International Securities Market (ISM) of the London Stock Exchange.

The issuance is supported by strong credit ratings, enhancing SRC’s position and role in the mortgage finance market. The sukuk will be listed on the ISM of the London Stock Exchange, contributing to increased market liquidity and supporting the mortgage finance ecosystem in the Kingdom of Saudi Arabia.

On this occasion, His Excellency Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the Board of SRC, stated that the successful listing of the international sukuk program on the London Stock Exchange is a continuation of the generous support provided by the Kingdom’s wise leadership and a step toward strengthening the mortgage finance system and providing innovative financing solutions to citizens.

Al-Hogail added that the listing represents a transformative step in integrating the Saudi economy into global financial markets, and a strategic move to attract foreign direct investment, enhance liquidity, and develop the secondary mortgage market in the Kingdom. He noted that the issuance supports the sustainability of the housing sector and contributes to achieving the objectives of the Housing Program under Vision 2030 by expanding financing options and providing more efficient funding channels.

He further explained: “The Kingdom aims to grow the mortgage finance sector by SAR 500 billion by 2030, reaching SAR 1.3 trillion, up from around SAR 800 billion in 2024 compared to SAR 200 billion in 2018. These financings represent 23% of total assets in bank portfolios—an indication of strong real estate momentum driven by mega projects underway across the Kingdom and the Vision 2030 goals to raise the homeownership rate to 70% by the end of the decade. By the end of 2023, the homeownership rate reached 63.7%, exceeding the year’s target of 63%.”

For his part, Majed Al-Abduljabbar, CEO of SRC, affirmed that the listing of the international sukuk program on the London Stock Exchange reflects global market confidence in the Saudi economy and the stability of the Kingdom’s financial sector, supporting funding diversification and enhancing SRC’s capacity to offer sustainable financing solutions.

Al-Abduljabbar added: “The listing in London Stock Exchange strengthens the company’s global presence, opens doors for new strategic partnerships, and contributes to the development of the mortgage finance market while attracting high-quality investments that support sustainable development goals. The sukuk program aligns with SRC’s strategy to attract a diverse base of international investors and reinforces its position as a key player in the mortgage finance market while leveraging the global financial environment to expand its impact in international markets.”

The successful pricing of this international sukuk issuance reflects SRC’s growing role in attracting foreign direct investment, boosting liquidity, supporting the secondary mortgage market, providing innovative financing solutions, and accelerating the growth of the housing sector in the Kingdom—all of which support the goals of the Housing Program and Financial Sector Development Program.

In line with its strategic objectives, SRC aims to attract a diversified base of international investors by expanding its sukuk program to cover global markets. The company maintains strong credit ratings from major global rating agencies, including Fitch (A+) – Stable, Standard & Poor’s (A) – Positive, and Moody’s (A2) – Positive, positioning it strongly for launching its first issuance on the global stage in line with international sukuk market standards and best practices in Islamic finance.

It is worth noting that SRC was established by the Public Investment Fund in 2017 to develop the mortgage finance market in the Kingdom, after obtaining a license from the Saudi Central Bank to operate in mortgage refinancing. SRC plays a key role in achieving the goals of the Housing Program under Vision 2030, which aims to raise homeownership rates among Saudi citizens by providing liquidity to lenders, enabling them to offer affordable housing finance to individuals, and working closely with partners to support the housing ecosystem in the Kingdom.