Saudi Real Estate Refinance Company (SRC) Extends its Refinancing Agreement with Alrajhi Bank with an Additional SAR 5.8 billion
Riyadh, Saudi Arabia, 03January 2024 – The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), has extended its refinancing agreement with Alrajhi Bank, the world’s largest Islamic bank by mortgage assets and market cap, with an additional SAR 5.8 billion bringing the total value of refinancing agreements between the two to SAR 10.8 billion.
The continued collaboration between SRC and Alrajhi Bank, as highlighted by this new agreement, pinpoints SRC’s pivotal role in enhancing growth capabilities of banks and financiers through offering liquidity, capital management, and balance sheet de-risking solutions that will lead to an increase in the origination of new home loan assets, making home financing more accessible.
Majeed Fahad Alabduljabbar, CEO of SRC said: “The extension of our partnership with Alrajhi Bank speaks volumes about our combined efforts to take part in further growing the Kingdom’s housing market. As we continue to deepen our ties with leading financial institutions, our objective remains clear: to establish a benchmark secondary housing finance market in the Kingdom.”
He further emphasized, “The extension of this agreement marks a significant stride in advancing the goals of the Vision 2030 Housing Program. This initiative aims to facilitate increased accessibility to home financing, therefore, fostering greater rates of home ownership.”
SRC was established in 2017 by the Public Investment Fund after obtaining a license from Saudi Central Bank to operate in the market and as part of the government initiatives to support the Vision 2030 Housing Program, to be a pillar and a major catalyst for the growth and sustainability of housing finance in the Kingdom and establishing a secondary housing finance market.
Envisioning a future of progressive and innovative real estate financing solutions, SRC is dedicated to actively contribute to the ongoing development of the Saudi real estate financing market and to fostering growth of home ownership rates in the Kingdom.
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About Saudi Real Estate Refinance Company (SRC):
Fully owned by the Public Investment fund (PIF), the Saudi Real Estate Refinance Company (SRC) was established in 2017, after obtaining a license to operate in the secondary real estate market by the Saudi Central Bank, with the goal of transforming the local housing market.
SRC enables individuals and entities interested in direct or indirect real estate financing to increase and diversify origination of long-term fixed-rate (LTFR) products.
As one of its primary roles, SRC provides banks and real estate finance companies with liquidity or capital relief, enabling growth in the home financing sector to increase home ownership rates among Saudi citizens. SRC will subsequently aggregate and packages home financing portfolios into mortgage-backed securities to be sold to domestic and international investors.
With a world class management team drawing from international best practice, SRC is uniquely positioned to become the partner of choice for banks and non-bank lenders in the Kingdom.
SRC is rated ‘A’ (stable) by Fitch Ratings, A- (stable) by S&P Global and ‘A2’ (positive)by Moody’s Investors Service.
For more information please visit: http://srco.com.sa/