PIF-backed SRC said to issue first public tranche in 2019

Saudi Real Estate Refinance Company (SRC) is planning to launch its first public sukuk this year as it seeks to expand the Kingdom’s home mortgage market, The National reported, citing chief executive Fabrice Susini.

“This will be our first proper issuance of 2019 and our next step towards increasing our presence in capital markets to grow the Saudi mortgage market,” he said.

The second tranche of the SAR 11 billion sukuk program launched last month could be worth SAR 750 million, while the third tranche is also likely to be a public issuance.

Founded in 2017 by the Public Investment Fund, the kingdom’s sovereign wealth fund, SRC’s objective is to increase home ownership among Saudi nationals and develop the mortgage finance market.