SRC expanded its International Sukuk Programme from USD 5 billion to USD 10 billion, now listed on the London Stock Exchange’s International Securities Market and backed by a government guarantee.

The Sukuk programme carries strong ratings from Moody’s (A1) and Fitch (A+), reinforcing SRC’s role as a key enabler of Saudi housing finance.

Demand was robust, with orders about 6.8 times the offering size and exceeding USD 18.7 billion, driven by international investors.

The two-tranche sukuk—USD 1.25 billion for 5.5 years and USD 1.50 billion for 10 years—saw strong oversubscription, underscoring confidence in Saudi debt instruments and SRC as a recurring international issuer.

Senior officials highlighted global confidence in Saudi debt instruments and SRC’s role in expanding housing liquidity and advancing Vision 2030 by boosting homeownership and strengthening the housing finance ecosystem.

The issuance carries a government guarantee.

SRC priced its third international sukuk issuance totaling USD 2.75 billion, guaranteed by the Government of Saudi Arabia, across two tranches identical to the 5.5-year and 10-year structure.

SRC’s CEO emphasized the attraction of Saudi debt instruments to global investors, noting the pricing broadens the investor base and supports development of the secondary mortgage market.

The deal attracted more than USD 16.75 billion in orders for the US dollar-denominated Reg S bond sale.

The International Sukuk Programme began in February 2025 at USD 5 billion, building on previous issuances of USD 2 billion and USD 2.5 billion in two tranches earlier that year.

The latest issuance was split into two tranches: USD 1.25 billion maturing in five-and-a-half years and USD 1.5 billion maturing in 10 years.

Pricing for the two tranches stood at USD 1.25 billion five-and-a-half years at US Treasuries plus 85 bp and USD 1.50 billion ten years at US Treasuries plus 95 bp.