SRC Prices $2.75bn Third International Sukuk, Doubles Programme

Saudi Real Estate Refinance Company (SRC) priced its third international sukuk issuance at $2.75 billion on July 7, 2026, a deal guaranteed by the Government of Saudi Arabia, according to TradeArabia. The offering drew $18.7 billion in orders, a 6.8 times oversubscription led by international investors, and SRC used the pricing to double its International Sukuk Programme from $5 billion to $10 billion, Arab News reported.

SRC, a company owned by the Kingdom’s Public Investment Fund, listed the enlarged programme on the International Securities Market of the London Stock Exchange. The company carries credit ratings of A1 from Moody’s and A+ from Fitch Ratings, Arab News said.

What the Deal Looks Like

The $2.75 billion issuance splits into two tranches, TradeArabia reported. Tranche 1 totals $1.25 billion with a 5.5-year tenor, maturing January 14, 2032. Tranche 2 totals $1.5 billion with a 10-year tenor, maturing July 14, 2036. The issuance carries the government guarantee and is structured under Mudaraba and Murabaha arrangements, according to TradeArabia.

SRC’s pricing announcement, carried by Zawya on July 9, 2026, described the issuance as evidence of continued global investor appetite for Saudi debt instruments and pointed to the company’s role in developing housing finance in the Kingdom.

A Third Trip to the Market Since 2025

This isn’t SRC’s first test of international investor appetite. Its debut issuance in February 2025 raised $2 billion, and a second issuance later in 2025 raised $2.5 billion, according to Arab News. Combined with the July 2026 sukuk, SRC has now raised $7.25 billion across three issuances in roughly eighteen months.

Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and SRC Chairman, said the issuance reflects global confidence in the national economy and supports raising home-ownership rates among Saudi families, Arab News reported. SRC CEO Majeed bin Fahd Al-Abduljabbar joined Al-Hogail in framing the pricing as a sign of the continued attractiveness of Saudi debt instruments to global investors, according to the company’s press release carried by Zawya.

The pricing lands against a shifting global sukuk issuance picture, and it follows a run of large Saudi issuers, including Saudi Aramco, that have tapped international sukuk markets for dollar funding in recent years.

The Syndicate Behind the Book

Nine banks acted as Joint Lead Managers on the deal: DBS Bank, HSBC Bank, the Islamic Corporation for the Development of the Private Sector (ICD), J.P. Morgan, KFH Capital, KIB Invest, Mizuho, Bank Al Salam, and Standard Chartered, TradeArabia reported. Among them was KIB Invest, the Islamic investment arm of Kuwait International Bank.

“The success of this landmark issuance amid the current regional environment is a clear testament to the resilience and depth,” said Mohammad Al Duwaillah, General Manager of Treasury at KIB, according to TradeArabia. Jamal Al-Barrak, CEO of KIB Invest, said the firm’s participation as a Joint Lead Manager reflects its strong position in the market, TradeArabia reported.

A Bigger Programme to Fill

Doubling the programme to $10 billion, listed on the London Stock Exchange’s International Securities Market, gives SRC standing capacity to return to international investors without relaunching a facility, according to Arab News. What that ceiling can’t guarantee is a repeat of the 6.8 times cover the July deal drew. The next test is whether investor demand for government-guaranteed Saudi sukuk holds when SRC comes back to the market against the enlarged programme.

Frequently Asked Questions

How big is SRC’s third international sukuk?

SRC priced the deal at $2.75 billion on July 7, 2026, split into a $1.25 billion tranche with a 5.5-year tenor and a $1.5 billion tranche with a 10-year tenor, according to TradeArabia.

Why was SRC’s sukuk oversubscribed?

The offering drew $18.7 billion in orders against $2.75 billion on offer, a 6.8 times oversubscription driven mainly by international investors, Arab News reported.

What is Saudi Real Estate Refinance Company?

SRC is a company owned by Saudi Arabia’s Public Investment Fund that develops housing finance in the Kingdom; its sukuk carry a Government of Saudi Arabia guarantee and ratings of A1 from Moody’s and A+ from Fitch, per Arab News.

Which banks managed SRC’s sukuk issuance?

Nine banks served as Joint Lead Managers, including HSBC Bank, J.P. Morgan, Standard Chartered, and KIB Invest, the Islamic investment arm of Kuwait International Bank, according to TradeArabia.

How large is SRC’s international sukuk programme now?

SRC doubled the programme, listed on the London Stock Exchange’s International Securities Market, from $5 billion to $10 billion alongside the July 2026 pricing, according to Arab News.