The Saudi Real Estate Refinance Co., wholly owned by the Public Investment Fund, purchased a portfolio of real estate loans worth over 5 billion riyals ($1.33 billion) from Al Rajhi Bank in the largest deal of its kind in the industry.

The mortgage finance company said in a statement on Sunday the deal reflects its efforts to support development of the residential real estate finance sector

Al Rajhi Bank, the second biggest lender in the kingdom, is also the world's largest Islamic bank by mortgage assets and market capitalisation.

(Writing by Brinda Darasha; editing by Seban Scaria)