Riyadh, KSA: Saudi Real Estate Refinance Company (SRC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), signed a portfolio acquisition transaction with Banque Saudi Fransi, in keeping with its purpose of injecting liquidity into Saudi housing finance market.
The agreement is among multiple mortgage portfolio acquisitions worth SAR750 million that SRC signed with local banks and specialist mortgage providers in Saudi Arabia.
The strategic agreement was signed by SRC’s CEO Fabrice Susini and Rayan Mohammed Fayez, CEO and MD of Banque Saudi Fransi on the sidelines of the Financial Sector Conference held from April 24 to April 25, 2019 in Riyadh. The portfolio acquisition is a reflection of how SRC makes further liquidity available for the Saudi housing market. This in turn offers capital relief to lenders and as a result enables the financial institutions to offer more accessible housing finance solutions to home buyers.
Commenting on the transaction, Mr. Susini said: “This announcement validates SRC’s purpose within a vibrant housing market, but for it to reach full potential we must ensure that there is improved supply of new homes whilst also making these homes affordable and accessible to more Saudi citizens.
“This agreement is a visible demonstration of how SRC makes further liquidity being available for the Saudi housing market which will ultimately make every Saudi citizen’s dream of owning a home a reality. That said, the agreement will further increase Banque Saudi Fransi’ ability to offer more accessibly home buying solutions.”
The announcement comes shortly after SRC successfully completed Sukuk issuances of SAR750 million, making it the first non-sovereign issuer in Saudi Arabia in 2019. The two-tranche issuance was under SRC’s SAR11 billion Sukuk establishment program announced in December 2018, acting as catalyst for further purchase of mortgage portfolios held by banks and specialist mortgage providers in the Kingdom.
SRC aims to refinance 20 per cent of Saudi Arabia’s mortgage market that is forecast to grow to SAR500 billion by 2020 and to SAR800 billion within the next decade.
Since inception in 2017, SRC has been working relentlessly to promote the development of the housing finance market, focusing on refinancing and liquidity components as well as standardization and the development of best practices.
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 with the goal to help transform the local housing market.
SRC enables originators to increase the number, type and length of long-term fixed-rate (LTFR) mortgages that in turn provide consumers with a high degree of predictability and protection from potential interest rate increases. As one of its primary roles, SRC offers lenders funding to provide liquidity or capital relief, enabling growth in the home finance sector to increase home ownership rates among Saudi citizens. SRC then aggregates and packages portfolios of financing into mortgage backed securities to sell to domestic and international investors.
SRC is licensed to operate in the secondary real estate market by the Saudi Arabian Monetary Authority (SAMA). With a world class management team drawing from international best practice, SRC is uniquely positioned to become the partner of choice for lenders in the Kingdom.
For more information please visit: http://srco.com.sa/
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T: +966 11 2385526
© Press Release 2019