The Chief Executive of Saudi Real Estate Refinance Company said that the firm aims to issue up to SAR 4 billion ($1.07 billion) of long-term Sukuk this year.
Fabrice Susini, the Chief Executive of SRC, said that the company is also keen to tap foreign institutional investors for its debt sale this year.
SRC’s strategy is to tap the market twice this year and the company plans to issue between SAR 2 and 4 billion that will be issued in two tranches, said Susini.
Additionally, Susini said that the company is planning for a Sukuk in the 10 to 15-year range to help minimise refinancing risks as well as assessing whether it can also issue bonds in currencies other than the local riyal.
SRC issued a SAR 750 million Sukuk with multiple tenors in March, under a programme that allows it to issue up to SAR 11 billion of local currency denominated Islamic bonds.
Saudi Arabia wants to increase activity in the real estate market as it moves to diversify the economy and is taking steps to reform the sector as part of its Vision 2030 reform plan.
The Kingdom’s housing ministry is targeting the mortgage market to reach a total value of SAR 502 billion by 2020 from around SAR 300 billion now, reported Reuters.
Source Islamic Business&Finance