The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund, has signed a portfolio purchase agreement with Alrajhi Bank, the world’s largest Islamic bank by mortgage assets and market cap, in order to refinance more than $1.3 billion (SAR 5 billion) real estate financing portfolio.
The deal is the largest of its kind signed in the Saudi banking industry, reflects the ongoing efforts by SRC to actively support further development in the residential real estate finance sector by expanding its refinancing portfolio, and solutions to create a stable secondary real estate market in the kingdom.
In presence of His Excellency Majid bin Abdullah Al Hogail, Saudi Minister of Municipal and Rural Affairs and Housing, the deal was signed by Mr. Fabrice Susini, CEO of SRC, and Mr. Waleed Abdullah Almogbel, CEO of Alrajhi Bank.
Mr. Susini said that, “SRC’s agreement with Alrajhi Bank is a significant milestone in our strategic approach to help accelerate growth in the Kingdom’s thriving housing market. It is part of our strategic partnerships with leading financiers and originators which underpin our efforts to develop a best-in-class secondary mortgage market in the kingdom.”
“The deal with SRC strategically enhances our mortgage solutions and supports our established capabilities to address the needs of a broad customer base and the increasing demand for home ownership in the Kingdom,” Mr. Almogbel added.
This is the latest agreement in a series of similarly significant deals to support mortgage financiers and originators in order to broaden Saudi citizens’ access to more affordable and flexible home financing solutions that suit their needs.
Through these agreements, SRC provides liquidity, capital management, and balance sheet de-risking solutions to enhance real estate financiers’ and originators’ financing capacity which ultimately leads to increasing demand for home ownership in the Kingdom.
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