Riyadh, Saudi Arabia: – The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund, signed an agreement with Riyad Bank to acquire a SAR 500 million real estate financing portfolio.
The agreement between SRC and Riyad Bank is the second largest mortgage refinancing deal in the Kingdom. It was signed by Fabrice Susini, CEO of SRC and Tareq Al-Sadhan, CEO of Riyad Bank, in the presence of His Excellency Mr. Majid bin Abdullah Al Hogail, Minister of Municipal and Rural Affairs and Housing and Abdullah bin Mohammed Al-Issa, the Chairman of the Board of Directors at Riyad Bank.
Fabrice Susini, CEO of SRC, stated that this agreement with Riyad Bank is the latest in a series of similarly significant deals, as part of SRC’s continued drive to expand and strengthen its partnerships with leading banks and lenders in the Kingdom.
He added: "Through these agreements, SRC provides liquidity and risk management solutions to support lenders and originators’ efforts to de-risk their balance sheets and enhance both their origination and distribution capabilities.
As a result, Saudi citizens will have better chances to access home financing solutions that suit their needs which in turn will contribute to realizing the objectives of Vision 2030 to raise the percentage of residential ownership of Saudi families from 47% to more than 60% within 4 years.”
Tareq Al-Sadhan, CEO of Riyad Bank stated that the long-term partnership with SRC will provide housing finance solutions that fulfil the needs and requirements of Saudi families, saying: "Through our partnership with SRC, we are able to continue offering our customers with flexible home financing solutions. The agreement with SRC aligns with our shared vision to increase homeownership in the Kingdom, supporting the objectives of the Housing Program- one of the Kingdom’s Vision 2030 initiatives”
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 and ‘A2’ (stable) by Moody’s Investors Service.
For more information please visit: http://srco.com.sa/
For press enquiries, please contact:
Saudi Real Estate Refinance Company (SRC)
Joann Joseph, Instinctif Partners