PIF-owned Saudi Real Estate Refinance Company (SRC) finalized the pricing of its first government-guaranteed USD-denominated international Sukuk offering, it said in a press release. The issuance — valued at USD 2 bn — was 6x oversubscribed, and will be listed on the London Stock Exchange’s International Securities Market as part of SRC’s USD 5 bn International Sukuk Program.

What we know so far: The issuance will include two tranches with three and 10 years maturities. Additional details on yield rates and subscription rates were not disclosed.

Where will the funds go? The funds will be used to boost liquidity in the Saudi secondary mortgage market, support housing market sustainability, attract foreign investment, and integrate the Kingdom’s economy with global markets, the company said. The Kingdom aims to boost mortgage financing to SAR 1.3 tn by 2030, up from SAR 800 bn in 2024, Municipalities and Housing Minister Majid Al Hogail said in the press release.

ICYMI- SRC acquired a SAR 1 bn mortgage portfolio from Bidaya Finance in December, marking the largest transaction of its kind among mortgage companies.

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