Saudi mortgage-finance firm draws $18.7 billion in sukuk orders

A crowded book for Gulf credit

Saudi Real Estate Refinance Co. priced a $2.75 billion government-guaranteed international sukuk, drawing more than $18.7 billion of orders from regional and global investors.arabnews +1 The PIF-owned housing finance company split the sale into a $1.25 billion tranche with a 5.5-year tenor and a $1.5 billion tranche maturing in 10 years.arabnews +1 The order book, equal to 6.8 times the deal size, points to resilient demand for high-grade Saudi paper even as issuers across the Gulf compete for foreign capital.arabnews +1

The company also doubled its international sukuk program to $10 billion from $5 billion, keeping it listed on the London Stock Exchange's International Securities Market and supported by a government guarantee.arabnews +1 That expansion gives SRC more room to fund mortgage-market liquidity while returning to investors as a repeat borrower.

Mortgage finance moves into global markets

SRC launched the international program in February 2025 at $5 billion, then sold a first government-guaranteed issuance of $2 billion across three-year and 10-year tranches.pif +1 A second 2025 sale raised $2.5 billion before the latest transaction, making the new deal its third international sukuk issue of the year.arabnews +1

The overseas funding push follows a long buildout in local-currency Islamic debt. Saudi housing authorities said SRC completed a local sukuk program worth SAR10 billion after a final SAR4 billion tranche drew coverage of more than 1.8 times.momah Another ministry notice said the company doubled a separate local sukuk program to SAR20 billion and completed a fifth tranche worth SAR3 billion.momah

Investor demand backs the housing agenda

SRC was established by the Public Investment Fund in 2017 and is licensed by the Saudi Central Bank to develop the kingdom's real estate finance market.arabnews +1 Its mandate is to provide liquidity to lenders so banks and finance companies can offer more housing-finance products, a goal tied to Saudi Arabia's Vision 2030 housing program.arabnews +1

The latest order book strengthens that policy story because government-backed issuance can pull foreign savings into a market that still needs long-term funding. Majed Al-Hogail, Saudi Arabia's minister of municipalities and housing and SRC's chairman, said the demand reflected global confidence in the national economy and would support liquidity in real estate finance.arabnews SRC said its international sukuk program carries A1 and A+ ratings from Moody's and Fitch, respectively, a rating profile that helps explain why investors crowded into the book.zawya