SRC Sukuk to issue dual-tranche USD benchmark sukuk with Saudi government guarantee

Published 25/09/2025, 10:26
SRC Sukuk to issue dual-tranche USD benchmark sukuk with Saudi government guarantee

RIYADH - SRC Sukuk Limited plans to issue two USD benchmark sukuk securities due in 2029 and 2035, according to a pre-stabilization notice released Thursday. The securities will be guaranteed by the Ministry of Finance acting on behalf of the Government of the Kingdom of Saudi Arabia.

The Saudi Real Estate Refinance Company will serve as the obligor for the issuance, which will consist of fixed-rate securities maturing on April 2, 2029, and October 2, 2035. The offer price has yet to be determined.

HSBC Bank plc will act as the stabilization coordinator, alongside multiple stabilization managers including DBS Bank, J.P. Morgan Securities, Standard Chartered Bank, and several others. The stabilization period is expected to begin on September 25, 2025, and end by October 31, 2025.

The stabilization managers may over-allot securities or conduct transactions to support the market price at levels higher than might otherwise prevail, with an over-allotment facility of up to 5% of the aggregate nominal amount.

The securities have not been registered under the United States Securities Act of 1933 and will not be offered for sale in the United States. The announcement notes that any stabilization action is not guaranteed and may be ended at any time.

According to the press release statement, the offer is directed only at qualified investors in European Economic Area Member States and at persons outside the United Kingdom or those in the UK with professional investment experience.

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