SRC Prices $2.75B Sukuk in Third International Issue

Saudi Real Estate Refinance Co. (SRC) priced a $2.75 billion sukuk, its third international issuance, the company said.

SRC is wholly owned by the Public Investment Fund, Saudi Arabia's sovereign wealth fund. The company was established in 2017 to refinance real estate financing provided by banks and other lenders, helping to develop the secondary mortgage market in the kingdom. That market is a pillar of Saudi Arabia's Vision 2030 plan, which aims to boost homeownership to 70% of citizens.

The sukuk follows two earlier international deals, in 2023 and 2024, and signals continued access to global debt markets for PIF-backed entities. The pricing attracted demand from international investors, according to the company's announcement. Proceeds will be used to refinance existing real estate financing and support the growth of the mortgage market.

SRC's issuance comes as Saudi Arabia deepens its capital markets. The sukuk market in the kingdom has expanded rapidly, with both sovereign and quasi-sovereign issuers tapping international investors. The PIF's backing provides a strong credit anchor, allowing SRC to price competitively.

The transaction was arranged by a group of international banks. No further details on the tenor or coupon were disclosed.