RIYADH — Saudi Real Estate Refinance Company (SRC), a Public Investment Fund-owned company, has priced a $2.75 billion international sukuk issuance backed by a guarantee from the Saudi government, the company said Thursday.
The issuance consists of a $1.25 billion tranche with a 5.5-year maturity and a $1.5 billion tranche with a 10-year maturity.
SRC said investor demand exceeded the offering by 6.8 times, with international investors accounting for most of the subscriptions.
The company also announced that it has doubled the size of its international sukuk programme, listed on the International Securities Market of the London Stock Exchange, from $5 billion to $10 billion.
The latest transaction is SRC’s third international sukuk issuance. The company launched the programme in February 2025 with an inaugural $2 billion issue split between three-year and 10-year maturities, followed later that year by a $2.5 billion issuance with 3.5-year and 10-year maturities.
“The success of SRC’s third international sukuk issuance reflects strong global confidence in the Saudi economy and supports the development of the Kingdom’s housing finance market,” Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and chairman of SRC, said in a statement.
Chief Executive Officer Majeed Fahad Alabduljabbar said the issuance would broaden the company’s investor base and support the continued development of Saudi Arabia’s secondary mortgage market.
SRC said its international sukuk programme is rated A1 by Moody’s and A+ by Fitch Ratings.
Established by the Public Investment Fund in 2017 and licensed by the Saudi Central Bank, SRC provides liquidity to mortgage lenders as part of Saudi Arabia’s efforts to expand home ownership under Vision 2030.
