Saudi Shariah-compliant home finance company Bidaya issues 300 million riyals sukuk

Saudi Arabian company Bidaya Home Finance has issued 300 million riyals ($80 million) in sukuk.

The two-year paper was drawn from its 1 billion riyals sukuk programme, the Shariah-compliant home financing company said in a statement on Sunday (Dec 22).

Its sukuk programme is aimed at tapping the Islamic capital market to diversify its funding sources.

This is Bidaya’s fourth sukuk in the domestic Islamic capital market, said the company.

It announced in October the repayment in full of the first tranche of its 500 million riyals sukuk programme worth 250 million riyals. The funding was used for general corporate and financing purposes.

Bidaya was established to facilitate home ownership for Saudi families.

It is sponsored by Saudi Arabia’s government’s Public Investment Fund, the Islamic Corporation for the Development of the Private Sector (ICD), that is a member of the Islamic Development Bank Group, and several other institutions.

The company earned a net profit of 5.47 million riyals for the three months ending September 30, when it held 1.8 billion riyals in assets.

($1 = 3.75 Saudi riyals)

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