Riyadh, Saudi Arabia–The Saudi Real Estate Refinance Company (SRC), a wholly-owned company of the Public Investment Fund (PIF), has signed a portfolio purchase agreement with Alrajhi, the world’s largest Islamic bank by mortgage assets and market cap, to refinance more than US$1.3 billion of its real estate financing portfolio.
In a statement, the firm said that the deal was the largest of its kind signed in the Saudi banking industry. It added that it 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.
The agreement was signed by SRC’s CEO Fabrice Susini, and Waleed Abdullah Almogbel, CEO of Alrajhi Bank. The Minister of Municipal and Rural Affairs and Housing, Majid bin Abdullah Al Hogail, was in attendance for the signing.
“Our agreement with Alrajhi Bank is a significant milestone in our strategic approach to help accelerate growth in the kingdom’s thriving housing market,” Susini stated. “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 agreement is the latest in a series of similar deals to support mortgage financiers and originators, SRC’s statement said.
These deals will broaden access to more affordable and flexible home financing solutions that suit Saudi citizen’s needs, it added.
Furthermore, via these agreements SRC will provide liquidity, capital management, and balance sheet de-risking solutions to enhance real estate financiers’ and originators’ financing capacity, which ultimately will lead to increased demand for home ownership in the Kingdom.
“The strategic partnership with SRC supports our ongoing joint drive to offer customers more access to flexible and affordable home financing solutions,” said Almogbel.
“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,”
Susini also highlighted that SRC will continue to help accelerate the growth of affordable home financing and expand Saudi citizens’ access to home ownership, in line with Vision 2030.
