Saudi Real Estate Refinance Company (SRC), a unit of the kingdom's sovereign wealth fund PIF (Public Investment Fund), has signed a portfolio purchase agreement with Alrajhi, the world’s largest Islamic bank by mortgage assets and market cap, to refinance over SR5 billion ($1.3 billion) real estate financing portfolio.

 

The deal is the largest of its kind signed in the Saudi banking industry, thus reflecting 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.

 

It was signed by the group's CEO Fabrice Susini and Alrajhi Bank CEO Waleed Abdullah Almogbel in the presence of Majid bin Abdullah Al Hogail, the Minister of Municipal and Rural Affairs and Housing.

 

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.

  

"Our agreement with Alrajhi Bank is a significant milestone in our strategic approach to help accelerate growth in the kingdom’s thriving housing market,"stated Susini. 

 

"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," he noted.

 

In addition, by providing our solutions, we continue to help accelerate the growth of affordable home financing and expanding citizens’ access to homeownership, in line with Vision 2030 goals, he added.  

 

Dubbing it as a significant deal, Almogbel said: "The strategic partnership with SRC supports our ongoing joint drive to offer customers more access to flexible and affordable home financing solutions."

 

"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," he added.-TradeArabia News Service