Name of borrower: Saudi Real Estate Refinance Company
Amount: SR3.5 billion
Tenor: Five and seven years.
Underwriters: HSBC, Aljazira Capital, Al Rajhi Capital, NCB Capital
Date: 16 November 2023
Saudi Real Estate Refinance Company is one of the most active sukuk issuers in the region and has issued SR16.5 billion ($4.4 billion) in government-guaranteed sukuk since launching its SR20 billion programme, guaranteed by the Saudi Arabian government’s ministry of finance, in early 2021.
Last year, it issued several transactions, including a SR3.5 billion dual-tranche deal, the seventh issuance under the programme. The private placement was issued in two sukuk series: a SR2 billion five-year tranche and a SR1.5 billion seven-year tranche.
The five-year tranche priced at 5.2% and the seven-year at 5.3%.
The deal benefitted from market sentiment after the US Federal Open Market Committee meeting on November 6 when concern about further interest-rate hikes subsided following disappointing numbers on unemployment.
HSBC acted as the lead arranger for the issuance. HSBC, Al Rajhi Capital, Aljazira Capital and NCB Capital were joint lead managers.