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Saudi Real Estate Refinance Company (SRC) issues SAR 2 billion Sukuk, under its existing Sukuk Programme, to increase its support for home ownership in the Kingdom of Saudi Arabia

New funding raised will enable mortgage originators to provide lower mortgage rates and support the housing market, making borrowing more accessible to buyers

Issuance helps to deepen Saudi capital markets under Financial Sector Development Program

RIYADH, Saudi Arabia, Dec. 12, 2021 /PRNewswire/ — Saudi Real Estate Refinance Company (SRC) successfully completed issuing a SAR 2 billion Sukuk to support lenders in the housing market, with the aim to further expand home ownership by making it more affordable. The Sukuk was guaranteed by the Kingdom of Saudi Arabia through the Ministry of Finance.

Saudi Real Estate Refinance Company Logo (PRNewsfoto/Saudi Real Estate Refinance Company)

Saudi Real Estate Refinance Company Logo (PRNewsfoto/Saudi Real Estate Refinance Company)

The 10-year Sukuk was issued at a competitive fixed profit rate of 3.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} marketed to Saudi institutional investors, the deal was oversubscribed 2.5 times

Fabrice Susini, CEO of SRC, which is wholly owned by the Public Investment Fund (PIF), said: “The very positive reception in the market for our Sukuk demonstrates strong confidence in the Saudi housing market and economy, and robust investor support for our business model as home ownership continues to increase. The funding raised will enable us to expand our relationships with home finance lenders, as Saudi Arabia moves closer to its target of achieving 70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} home ownership among Saudi nationals by 2030.”

“Our latest Sukuk issuance also adds further depth to the Saudi fixed income market in line with the goals of the Financial Sector Development Program (FSDP) as part of Vision 2030.”

SRC’s new series of Sukuk was issued under its SAR 10 billion Sukuk Programme established earlier this year, under which SRC has the ability to issue sovereign-guaranteed instruments targeting local investors. Its first Sukuk offerings under the programme were issued in March 2021 in two tranches of 7 and 10-years totaling SAR 4 billion.

SRC’s refinancing activities for lenders helps develop an active secondary home financing market in the Kingdom which supports the efficiency and stability of the primary housing market.

The lead coordinator for the transaction was HSBC Saudi Arabia and the joint lead managers were AlJazira Capital, Al Rajhi Capital, HSBC Saudi Arabia, Riyad Capital, Saudi Fransi Capital, and SNB Capital.

About Saudi Real Estate Refinance Company (SRC):

Fully owned by the Public Investment fund (PIF), the Saudi Real Estate Refinance Company (SRC) was established in 2017, after obtaining a license to operate in the secondary real estate market by the Saudi Central Bank, with the goal of transforming the local housing market.

SRC enables individuals and entities interested in direct or indirect real estate financing to increase and diversify origination of long-term fixed-rate (LTFR) products.

As one of its primary roles, SRC provides banks and real estate finance companies with liquidity or capital relief, enabling growth in the home financing sector to increase home ownership rates among Saudi citizens. SRC will subsequently aggregate and packages home financing portfolios into mortgage-backed securities to be sold to domestic and international investors.

With a world class management team drawing from international best practice, SRC is uniquely positioned to become the partner of choice for banks and non-bank lenders in the Kingdom.

SRC is rated ‘A’ (stable) by Fitch Ratings and ‘A2’ (stable) by Moody’s Investors Service.

For more information please visit: http://srco.com.sa/

Logo – https://mma.prnewswire.com/media/1707793/Saudi_Real_Estate_Refinance_Company_Logo.jpg

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SOURCE Saudi Real Estate Refinance Company

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Bank Negara welcomes Financial Management and Resilience programme

KUALA LUMPUR: The banking market and Agensi Kaunseling dan Pengurusan Kredit’s (AKPK) Fiscal Administration & Resilience Programme (URUS) has obtained full help from Financial institution Negara Malaysia.

The programme is for personal borrowers/prospects who continue to be afflicted by the Covid-19 pandemic.

The goal of URUS is to assistance B50 debtors with accomplishing loans who have lost their positions or who are enduring an earnings decline of at the very least 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Qualified borrowers who desire to utilize for URUS can strategy their banks beginning from Nov 15 to Jan 31, 2022.

In a statement on Thursday, Governor Datuk Nor Shamsiah Mohd Yunus reported the central bank has been performing with AKPK to put in put a holistic financial debt administration and financial scheduling answer.

“The goal is to provide acceptable support to borrowers so that they not only meet up with their loan obligations but importantly, return to a firmer monetary footing. This will reinforce the economical resilience of debtors in the longer time period,” she stated. The implementation of URUS is in line with these initiatives.

Borrowers/prospects who are not qualified for URUS may perhaps also strategy their financial institutions to discuss other compensation alternatives that suit their economical conditions.

Lender Negara also mentioned borrowers/customers facing any difficulty with their programs, may possibly get in touch with BNMTELELINK at bnm.my/RAsurvey to look for aid. Debtors/prospects may perhaps also get much more information and facts on the new scheme by visiting banks’ and AKPK’s internet websites.

Bank Negara also explained for SMEs, further more enhancements to its fund for SMEs will be declared in the course of the upcoming Spending budget 2022 on Oct 29.

Importantly, these enhancements to the fund will assistance companies handle cashflows and reposition themselves with the reopening of the financial state.

“Despite heightened credit score hazards, bank funding to SMEs carries on to expand with added capacity furnished through the fund and credit score assure strategies,” the central lender stated.

In accordance to Financial institution Negara, for the very first six months of 2021, a complete of RM154bil was disbursed to SMEs which is 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increased than the pre-pandemic level.

Since the begin of the pandemic, RM18bil has been allocated below the fund to augment financing by the banking procedure to SMEs.

Financial institution Negara also said financial loans fantastic for the SME section greater by 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in excess of the identical interval final calendar year.

“Efforts are also underway to develop substitute debt-fairness and blended financing initiatives to enable SMEs have accessibility to a broader assortment of proper funding choices throughout their development cycle.

“This will be crucial to decreased the leverage and reinforce the extended-term resilience and capacity of SMEs, and raise their contribution to the economy,” Nor Shamsiah explained.