Bidaya’s first Sukuk issuance successful

Mazin Al Ghunaim

RIYADH — Bidaya Home Finance has successfully closed on its inaugural Sukuk issuance under the recently established SR500 Million Sukuk Issuance Programme. The total amount raised in relation to the Series 1 Sukuk was SR250 Million closing in April 2018.

“This is a landmark transaction since Bidaya is the first housing finance company in Saudi Arabia to issue a Sukuk,” said Bidaya's CEO Mazin Al Ghunaim. “There was tremendous appetite for the issuance with participation from a range of investors including government organizations, asset managers financial institutions and family offices in the Kingdom. Bidaya is keen to play a role in the development of the local debt capital markets and hopefully, this issuance shall act as a catalyst for other private issuers seeking to tap the market.”

Ashmore Investment Saudi Arabia acted as the Arranger with respect to the Sukuk Programme / issuance; while, Albilad Capital acted as the Dealer.

Dr. Abdullah Alshwer, Managing Director of Ashmore Investment Saudi Arabia, said "the transaction comfortably locked in competitive pricing at the shorter end of the maturity curve and will provide complimentary liquidity to Bidaya as part of its overall funding strategy towards achieving its strategic growth plan. The closing of this transaction marks the continued recent investor confidence in the market and especially the home finance sector supporting the wider positive macro-economic outlook including the recent FTSE inclusion and rally in the Saudi public market. Ashmore is pleased to have participated and contributed towards the success of this transaction."

Bidaya's Sukuk Programme is aimed at maximizing the utilization of capital markets, resulting in the diversification of the company's funding sources. It is an unprecedented initiative in the Saudi real estate market and in line with the Saudi Vision 2030 to facilitate homeownership for all Saudi citizens.

Headquartered in Riyadh, Bidaya was launched in 2016 as a national real estate finance company after identifying the need for home finance options, primarily for nationals and foreigners. Bidaya is licensed under the Saudi Arabian Monetary Agency (SAMA) and offers professional and reliable Shariah- compliant financial solutions to both customers and partners.

Bidaya’s specialized team of highly trained and experienced professionals offer tailor-made advice with comprehensive home finance solutions for buying or refinancing residential properties (ready and off-plan) across the Kingdom. — SG