RIYADH: Saudi Real Estate Refinance Co. has completed issuing a SR2 billion ($533 million) sukuk to support lenders in the Kingdom’s housing market. The 10-year sukuk was issued at a fixed profit rate of 3.04 percent marketed to Saudi institutional investors, the deal was oversubscribed 2.5 times, the company said in a statement on Sunday. The newly raised fund will allow mortgage originators to provide lower mortgage rates and support the housing market, making borrowing more accessible to buyers. Fabrice Susini, CEO of SRC, which is wholly owned by the Public Investment Fund (PIF), said: “The very positive reception in the market for our sukuk demonstrates strong confidence in the Saudi housing market and economy, and robust investor support for our business model as home ownership continues to increase. The funding raised will enable us to expand our relationships with home finance lenders, as Saudi Arabia moves closer to its target of achieving 70 percent home ownership among Saudi nationals by 2030.” SRC’s new series of sukuk was issued under its SR10 billion sukuk program established earlier this year, under which SRC has the ability to issue sovereign-guaranteed instruments targeting local investors. Its first sukuk offerings under the program were issued in March 2021 in two tranches of 7 and 10-years totaling SR4 billion. “Our latest sukuk issuance also adds further depth to the Saudi fixed income market in line with the goals of the Financial Sector Development Program as part of Vision 2030.” SRC’s refinancing activities for lenders helps develop an active secondary home financing market in the Kingdom which supports the efficiency and stability of the primary housing market. The lead coordinator for the transaction was HSBC Saudi Arabia and the joint lead managers were AlJazira Capital, Al Rajhi Capital, Riyad Capital, Saudi Fransi Capital, and SNB Capital.