Sukuk Programme lists on the International Securities Market (ISM) of the London Stock Exchange (LSE), integrating the Saudi economy with global markets
London, 21 February 2025: The Saudi Real Estate Refinance Company (SRC), a PIF Company, has successfully completed the pricing of its first government-guaranteed international Sukuk, valued at USD 2 billion. The issuance, structured in two tranches with maturities of three and ten years, was oversubscribed 6 times, reflecting strong demand from more than 300 institutional investors. This Sukuk is part of SRC’s USD 5 billion international Sukuk program that was listed on the London Stock Exchange (LSE) and is backed by strong credit ratings, reinforcing the company’s position as a key player in the global housing finance market. The issuance will be listed on the International Securities Market (ISM) of the London Stock Exchange (LSE), further enhancing market liquidity and supporting Saudi Arabia’s mortgage finance ecosystem.
H.E. Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the Board of the SRC, said: “The successful listing of the international Sukuk Programme at the London Stock Exchange (LSE) reflects the unwavering support of our wise leadership and reinforces Saudi Arabia’s housing finance ecosystem, while providing innovative financing solutions for citizens. This marks a significant milestone in integrating the Saudi economy with global markets, attracting foreign direct investment, enhancing liquidity, and developing the secondary mortgage market in Saudi Arabia.”
H.E. Al-Hogail added: “Saudi Arabia aims to expand the mortgage finance sector by SAR 500 billion by 2030, reaching SAR 1.3 trillion. The Kingdom’s mortgage market was approximately SAR 800 billion in 2024, up from SAR 200 billion in 2018. These financings now account for 23% of total bank assets.”
H.E. Al-Hogail highlighted that this growth is driven by the Kingdom’s mega projects and the objectives of Vision 2030, which set a target homeownership rate of 70% for Saudi families by the end of the decade. By the end of 2023, homeownership reached 63.7%, surpassing the 63% target. “The new issuance supports the sustainability of the housing sector and contributes to achieving the objectives of the Housing Program under Saudi Vision 2030 by providing more efficient funding channels,” he concluded.
Majid Al-Abduljabbar, CEO of SRC, emphasized that the issuance reflects global market confidence in the Saudi economy and strengthens the diversification of funding sources. “The listing of the Sukuk Programme on the LSE not only strengthens SRC’s global presence and strategy to attract a diverse base of international investors, but also solidifies the company’s position as a key player in the mortgage finance market, paving the way for new strategic partnerships and high-quality international investments.”
Al-Abduljabbar said that the successful listing of the international Sukuk also reflects SRC’s commitment to providing innovative financing solutions and accelerating the growth of Saudi Arabia’s housing sector, contributing to the objectives of the Housing Program and the Financial Sector Development Program.
SRC holds strong credit ratings from leading rating agencies, including Fitch (‘A+’ – Stable), S&P (‘A’ – Positive), and Moody’s (‘A2’ – Positive). These ratings reinforce the company’s strong position in launching its first international Sukuk Programme, which aligns with global Sukuk market standards and best practices in Islamic finance.
SRC was established by the Public Investment Fund (PIF) in 2017 to develop Saudi Arabia’s real estate finance market. It operates under a license from the Saudi Central Bank (SAMA) to facilitate real estate refinancing. SRC plays a key role in achieving the objectives of the Housing Program under Saudi Vision 2030, which aims to increase homeownership rates among Saudi citizens. The company supports this goal by providing liquidity to lenders, enabling them to offer affordable housing finance to individuals. Additionally, SRC works closely with partners to strengthen Saudi Arabia’s housing ecosystem.