Saudi Real Estate Refinance Company (SRC) aims to make its SAR 300 million to SAR 500 million public Sukuk issue in late September or early October 2018.
Saudi Arabia’ SRC plans to begin issuing Islamic bonds in coming months to finance its drive to expand the Kingdom’s home mortgage market, reported Reuters.
Fabrice Susini, CEO of Saudi Real Estate Refinance Company, said that the company will now begin issuing Sukuk to raise money, first in Saudi riyals but eventually in foreign currencies to attract international investors.
SRC aims to refinance 20 per cent of Saudi Arabia’s primary home loans market, which authorities hope to expand to SAR 500 billion by 2020 and SAR 800 billion by 2028, currently Saudi Arabia’s primary home loans stands at SAR 290 billion now.
The company was founded in 2017 by the Public Investment Fund (PIF) and has so far operated with financing from the sovereign wealth fund and short-term deals with banks.