Saudi Real Estate Refinance Co. issues $200m sukuk

Investments in Saudi Arabia’s real estate financing sector is expected to reach between 60 billion riyals and 80 billion riyals in 2019. (AFP)
Updated 14 March 2019
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Saudi Real Estate Refinance Co. issues $200m sukuk

  • SRC, a wholly owned subsidiary of the kingdom’s sovereign wealth fund, aims to accelerate housing construction
  • The company mandated HSBC Saudi Arabia as sole lead manager and bookrunner of the sukuk program

RIYADH: Government-owned Saudi Real Estate Refinance Co. (SRC) said on Wednesday it had completed a 750-million-riyal ($200 million) sukuk issue with multiple tenors, the first transaction by a non-sovereign issuer in Saudi Arabia in 2019.
The issuance comes under a program SRC established in December that allows it to issue up to 11 billion riyals of local currency-denominated Islamic bonds.
SRC, a wholly owned subsidiary of the kingdom’s sovereign wealth fund (PIF), aims to accelerate housing construction — a sensitive social issue and a top objective of economic reforms — by injecting liquidity into the real estate market.
Its target is to eventually refinance 20 percent of Saudi Arabia’s primary home loans market, which authorities hope to expand to 500 billion riyals by 2020 and 800 billion riyals by 2028. Real estate financing hit 4.7 billion riyals in January.
The company mandated HSBC Saudi Arabia as sole lead manager and bookrunner of the sukuk program.
The program may help the company become a major issuer in Saudi Arabia’s domestic bond market. Increasing activity in that market is another goal of economic reforms.
Saudi Arabia’s housing minister said last week he expected investments in the real estate financing sector to reach between 60 billion riyals and 80 billion riyals in 2019.


China’s crude oil imports from Saudi Arabia up 43%

Updated 25 May 2019
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China’s crude oil imports from Saudi Arabia up 43%

  • Imports grew to 1.53 million barrels per day compared with 1.07 million a year ago
  • Sinopec Group and China National Petroleum Corp., the country’s top state-owned refiners, are halting Iranian oil purchases for loading in May, three people with knowledge of the matter said

BEIJING: China’s crude oil imports from Saudi Arabia rose 43 percent in April, making the Middle Eastern OPEC kingpin once again the top supplier to the world’s second-biggest economy, boosted by demand from new private refiners.
Saudi imports grew to 6.30 million tons, or 1.53 million barrels per day (bpd) on a daily basis, compared with 1.07 million bpd in the year ago period, according to data from the General Administration of Customs released on Saturday.
Saudi shipments were supported by higher refinery run rates at Hengli Petrochemical Co. Ltd, with production at the 400,000 bpd-capacity refinery in northeast China expected to reach optimal levels in late June. About 70 percent of the feedstock for Hengli came from Saudi Arabia.
Meanwhile Russian supplies were 6.12 million tons, or 1.49 million bpd, up from 1.35 million bpd in April last year.
China in April imported 3.24 million tons of crude oil from Iran, or 789,137 bpd, up from March’s 541,100 bpd, as companies ramped up buying before the scrapping of sanctions waivers the US had granted to big buyers of Iranian oil.
China Petrochemical Corp. (Sinopec Group) and China National Petroleum Corp. (CNPC), the country’s top state-owned refiners, are halting Iranian oil purchases for loading in May, three people with knowledge of the matter said.
Venezuela shipments stood at 1.9 million tons, or 462,813 bpd in April, up 85 percent versus 249,700 bpd in March, while crude imports from Iraq were 3.31 million tons, or 806,372 bpd, down from 904,500 bpd the previous month.