The Saudi Real Estate Refinance Company (SRC), wholly owned by the Saudi Public Investment Fund (PIF), announced Tuesday it would double its domestic Saudi-Riyal-denominated Sukuk program to $5.32 billion (SAR 20 billion) following a positive market reaction to its previous tranches of issuance.
SRC's Saudi-riyal-denominated Sukuk program was launched in March 2021 with the completion of its first series of $1.06 billion (SAR 4 billion). The issuance was offered in 7- and 10-year dual tenors to Saudi-based institutional investors and was 2.15 times oversubscribed.
The current Sukuk tranche follows the completion of the company's $2.66 billion (SAR 10 billion) issuances over 12 months in a fixed profit rate format across a tenor of up to 10 years.
As part of its upsized program, SRC completed another Sukuk issuance amounting to $800 million (SAR 3 billion). It was offered in a fixed profit rate format across a tenor of 10 years and distributed to institutional investors. The deal was 1.27 times oversubscribed, reflecting significant market demand.
HSBC Saudi Arabia acted as the sole lead coordinator on the latest offering. On the other hand, the joint lead managers were Aljazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, and SNB Capital, according to SRC.
