Saudi Somou Real Estate posts profits up 13% in 2021

RIYADH: The Saudi Real Estate Refinance Co., which is wholly owned by the Public Investment Fund, has successfully completed its SR10 billion ($2.7 billion) sukuk program.

The first tranche of the national sukuk program was launched in March 2021, offering dual tenors of seven and 10 years to Saudi investors. This initial tranche was oversubscribed 2.15 times, attracting over SR8 billion in investment.

The second tranche of SR2 billion sukuk which was offered in December 2021 with a competitive fixed rate of profit of 3.04% was also oversubscribed by 2.5 times.

The lead series offering coordinator was HSBC Saudi Arabia and the co-lead managers were AlJazira Capital, HSBC Saudi Arabia, Riyadh Capital and SNB Capital.

“The positive market response to our SR 10 billion domestic sukuk program, as evidenced by the series of oversubscribed issues within 12 months of the offering of the first round, speaks to the valuable confidence that investors have placed in the SRC and their strong confidence in the housing market and the economy of the Kingdom,” SRC CEO Fabrice Susini said in a press release.

The company said its main goal is to provide Saudi citizens with access to cheaper home loans while expanding the borrower base.

“We will continue to work closely with our partners, including banks, originators and lenders as well as investors, to offer the sukuk program on a regular basis to help further stabilize the Saudi mortgage market and accelerate the process. home ownership in the Kingdom in line with the goals of Vision 2030,” he added.