Prince Alwaleed, Vivendi chairman promote strategic partnership

Updated 27 February 2016
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Prince Alwaleed, Vivendi chairman promote strategic partnership

RIYADH: Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC) and chairman of Rotana Group, met Vincent Bollore, chairman of Vivendi at George V, Hotel in Paris.
The meeting was also attended by Fahad Alsukait, CEO of Rotana Group, Hassna Alturki, executive manager for international relations to the chairman and Kacy Grine, adviser to KHC.
During their meeting, Prince Alwaleed and Bollore discussed general, business and economic issues and future potential of a strategic partnership.
Furthermore, Prince Alwaleed and Bollore discussed the deal of acquiring KHC’s shares with a minimum amount of $150 million (SR563 million) that took place in 2015.
Moreover, the two discussed economic, cultural matters and topics related to media.
They also discussed the bi-lateral relations between Saudi Arabia and France, and the strong relations between the prince and France, especially KHC’s investments in France that are considered to be the largest Saudi Arabian presence in France.
In June 2015, French President François Hollande and Prince Alwaleed held a meeting at the French presidential Palace, The Elysee.
In a strategic alliance between France and KHC.
A consortium of France’s big companies led by the CDCIC International Capital, the International investment arm of Caisse des Depots, France’s Sovereign Wealth Fund, announced that they have approved an investment in KHC.
The deal constitutes the acquisition of KHC’s shares with a minimum amount of $150 million (SR563 million) subject to increase. Moreover, Prince Alwaleed retained all the 95 percent stake in KHC.


Saudi Real Estate Refinance Co. plans up to $1.07bn sukuk sale this year

Updated 23 April 2019
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Saudi Real Estate Refinance Co. plans up to $1.07bn sukuk sale this year

  • The plan by SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios
  • SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year

RIYADH: Saudi Real Estate Refinance Co. (SRC), modelled on US mortgage finance firm Fannie Mae, aims to issue up to 4 billion riyals ($1.07 billion) of long-term sukuk this year, its chief executive said on Tuesday.

The plan by SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios from mortgage financing companies and banks to boost the Kingdom’s secondary mortgage market.

SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year, Fabrice Susini told Reuters in an interview.

“Our strategy is clearly to tap the market twice this year,” he said. “We are really looking at probably issuing something between ... 2 and 4 billion riyal that we may be issuing in two tranches.

He said SRC was looking at sukuk in the 10 to 15-year range, to help minimize refinancing risks. “Generally speaking we are trying to issue as long as possible,” Susini said.

He said the company was assessing whether it could also issue bonds in currencies other than the local riyal.

In March, SRC completed a 750 million riyal sukuk issue with multiple tenors, under a program that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.

“The rule of the game for us is, like many projects across the Kingdom, attract liquidity from foreign investors,” Susini said.

He said SRC had spent 1.2 billion riyals from its balance sheet buying mortgages from local mortgage financing companies and provided liquidity to these firms.

It has also signed initial accords with several commercial banks to acquire housing mortgage portfolios.

Saudi Arabia’s housing ministry is targeting the mortgage market to reach a total value of 502 billion riyals by 2020 from around 300 billion riyals now.

The government wants to increase activity in the real estate market as it moves to revitalize the economy and is taking steps to reform the sector as part of its 2030 reform plan.

It has been working with developers and local banks to counter a shortage of affordable housing — one of the country’s biggest social and economic problems. Saudi Arabia wants 60 percent of its nationals to own homes by 2020, up from 47 percent in 2016.

The size of real estate financing relative to its gross domestic product is 5 percent in Saudi Arabia compared to 69 percent in the United States, 74 percent in the United Kingdom and 43 pct in Canada, the housing ministry has said.

“The goal of SRC in this market was to make sure that we will be able to refinance at least around 10 percent of the market in 2020, and 20 percent of the market by 2028,” Susini told Reuters.