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A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia. Image used for illustrative purpose. Image courtesy: Getty Images
Saudi Real Estate Refinance Company (SRC) has mandated banks to launch the sale of a benchmark US dollar-denominated Regulation S senior unsecured sukuk offering consisting of three and 10-year tranches under its SRC Sukuk Limited’s Trust Certificate Issuance Programme.
HSBC and J.P. Morgan, named as joint global coordinators, have been mandated to arrange pre-recorded global investor call along with a series of fixed income investor meetings, physically in London as well as virtually, commencing on Monday 17 February 2025.
An offering will follow, subject to market conditions. The company is rated A1 (Stable) by Moody’s, A- (positive) by S&P and A+ (Stable) by Fitch.
SRC, wholly owned by the Public Investment Fund of Saudi Arabia, is the primary provider of housing refinancing solutions.
The certificates will benefit from a guarantee by finance ministry acting on behalf of the Government of Saudi Arabia and are expected to be rated Aa3 by Moody’s and A+ by Fitch. HSBC advised on obtaining the rating of the certificates.
Al Rajhi Capital, GIB Capital, SNB Capital, The Islamic Corporation for the Development of the Private Sector, Société Générale, and Standard Chartered Bank are appointed as joint bookrunners and joint lead managers.
(Writing by Brinda Darasha; editing by Daniel Luiz)
