RIYADH: Housing finance market developer Saudi Real Estate Refinance Co. announced the pricing completion for its third issuance of international sukuk guaranteed by the government, with a total value of $2.75 billion.

According to the Saudi Press Agency, the Public Investment Fund-owned company split the issuance into two tranches: $1.25 billion with a five-and-a-half-year maturity, and $1.5 billion with a 10-year maturity.

The latest issuance underscores Saudi Arabia's dual strategy of strengthening its presence in international debt markets while expanding domestic housing finance. Strong demand for sovereign and government-backed debt has helped the Kingdom diversify its funding sources and attract long-term foreign capital, while SRC's sukuk program provides liquidity to banks and mortgage lenders, supporting higher homeownership rates under Vision 2030.

The issuance drew strong demand from regional and international investors, with subscription orders reaching 6.8 times the offering size, orders exceeding $18.7 billion against the $2.75 billion issuance, according to Minister of Municipalities and Housing and SRC Chairman Majed Al-Hogail.

Al-Hogail posted on X that the figure “reflects global confidence in the national economy and underscores the Saudi market’s advanced standing among international investors, supporting liquidity in the real estate finance market and helping raise home-ownership rates among Saudi families.”

SRC also announced an increase in the size of its international sukuk program, listed on the London Stock Exchange’s International Securities Market and backed by a government guarantee, from $5 billion to $10 billion.

SRC’s CEO, Majeed bin Fahd Al-Abduljabbar, said the completion of the third sukuk pricing reflects the appeal of Saudi debt instruments to global investors and helps expand the investor base and develop the secondary market for real estate finance in the Kingdom.

SRC launched its international sukuk program in February 2025 with a total value of $5 billion, completing a first issuance of $2 billion split across three-year and 10-year tranches, followed later that year by a second issuance of $2.5 billion split across three-and-a-half-year and 10-year tranches.

The international sukuk program holds strong credit ratings from leading global rating agencies, including Moody’s A1 and Fitch A+, reinforcing the company’s standing as a key enabler of the housing sector in Saudi Arabia.

SRC was established in 2017 by the Public Investment Fund with the aim of developing the Kingdom’s real estate finance market after obtaining a license from the Saudi Central Bank.

The company plays a central role in achieving the goals of the Housing Program under Saudi Vision 2030 by providing liquidity to financiers, enabling them to offer diverse home financing solutions to individuals, and working with partners to support the Kingdom’s housing ecosystem.