Bidaya Home Finance Company, Saudi Arabia’s leading non-bank provider of home financing products, today announced that it has repaid in full the first tranche of its SR 500 M Sukuk program worth of SR 250M. The SR 250M tranche was issued in April 2018 and was utilized for general corporate and lending purposes.
Mr. Mazin Al Ghunaim, Bidaya’s CEO said:
“The Sukuk was a landmark transaction for us and we were the first mortgage house to access the capital markets in this way. The timely repayment of the Sukuk [from our own resources] demonstrates the financial strength of the Company and is testament to the success of our [strategy] which is to provide attractive home finance solutions through our digital platform in a manner which is bold and innovative.”
Founded in 2015, Bidaya commenced lending operations in January 2016 and since that time has financed [More than 4000] of Ijarah contracts, enabling [16,000] Household serviced members to own their own homes.
Earlier this year the Company announced further landmark transactions which it will bring to market as required, including a further SR 1bn Sukuk, a SR 0.5bn RMBS program and an asset sale program with the SRC worth SR 0.5bn.
From commencing lending activities in April 2016, Bidaya has been profitable since Q3 of 2018 and has attained the position of being the Kingdom’s #1 home finance provider amongst non-banking lenders with a market share of [30% vs NBFLs] as of [September 2019].
Bidaya Home Finance was founded and launched as a joint stock company with a total paid-up capital of 900 million Saudi Riyals. Headquartered in Riyadh, Bidaya is licensed under the Saudi Arabian Monetary Agency (SAMA) and offers suite of Shari’ah compliant products to end-users and partners.
Bidaya Home Finance has the preeminent composition of shareholders in the home finance space. It is sponsored by the Islamic Corporation for the Development of the Private Sector (ICD – a member of the Islamic Development Bank Group) and the Public Investment Fund, along with a cross-section of organizations committed to the enablement of home ownership.
Source Zawya