“The successful sukuk issuance demonstrates confidence among the investor community and trust in a robust housing market in the kingdom and more broadly a resilient Saudi economy,” Majed Al Hogail, the country’s minister of housing and chairman of SRC, said.
Over 30 per cent of the issuance was subscribed by a mix of asset managers, a pension fund, government funds and insurance companies.
SRC was co-founded by the kingdom’s Public Investment Fund and the Ministry of Housing in October 2017 to boost home ownership in the biggest Arab economy.
It does not lend directly to end-users, but provides liquidity to the home loans market by buying mortgages from banks and other lenders, freeing them up to extend more loans to the sector.