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Saudi Mortgage Finance Giant Mulls US Debut Issuance Published April 27th, 2021 - 09:00 GMT
The SRC had also set its own target of reaching a 10 percent share of total residential mortgage loans by the end of 2020. (Shutterstock)
Highlights
The SRC may tap international markets to boost liquidity by the end of 2021
The Saudi Real Estate Refinance Company (SRC), the mortgage finance giant owned by the Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), is considering an international bond issuance this year, possibly in the US, its CEO told Arab News.
The SRC issued an SR4 billion ($1.07 billion) domestic sukuk the Islamic equivalent of a bond last month, designed to provide liquidity to the Kingdom’s housing market. CEO Fabrice Susini said that the SRC’s current balance sheet had more than tripled between the end of 2019 and the end of 2020, but he did not rule out going back to the market for another capital injection.
RIYADH: The Saudi Real Estate Refinance Company (SRC), the mortgage finance giant owned by the Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), is considering an international bond issuance this year, possibly in the US, its CEO told Arab News.
The SRC issued an SR4 billion ($1.07 billion) domestic sukuk the Islamic equivalent of a bond last month, designed to provide liquidity to the Kingdom’s housing market. CEO Fabrice Susini said that the SRC’s current balance sheet had more than tripled between the end of 2019 and the end of 2020, but he did not rule out going back to the market for another capital injection.
Tuesday, 20 April, 2021 - 10:15
The Saudi real estate market is being promoted by the activity of refinancing to increase investor confidence. (Asharq Al-Awsat) Riyadh - Asharq Al-Awsat
Moody s has assigned first-time issuer ratings to Saudi Real Estate Refinance Company (SRC) of A2.
SRC s baa3 BCA reflects the company s solid asset quality and strong capitalization which are moderated by a still evolving profitability profile, high reliance on wholesale funding, concentrated exposure to the relatively new mortgage market in Saudi Arabia, and low levels of liquidity.
The Company announced that this high rating comes as a result of its continuous work to provide the necessary liquidity in the housing sector in the Kingdom, in a way that contributes to increasing the ownership of Saudi families and boosting the confidence of local and international investors in the Saudi market.