Riyadh, Saudi Arabia: The Saudi Real Estate Refinance Company (SRC), wholly owned company of the Public Investment Fund (PIF), signed a joint agreement with Saudi National Bank (SNB) to sell a real estate financing portfolio worth SAR 1 billion, which is considered the largest bank refinancing in the Kingdom to date. The agreement was signed in the presence of His Excellency Mr. Majid bin Abdullah Al Hogail, Minister of Municipal and Rural Affairs and Housing and Mr. Ammar Alkhudairy, Chairman of SNB.

The agreement was signed by Fabrice Susini, CEO of SRC and Majed Al Ghamdi, Chief Executive Officer of Retail at SNB. The agreement aims to refinance the portfolio to provide long-term liquidity to the Saudi home financing market and facilitate risk management in the sector.

Fabrice Susini, CEO of SRC, stated that the company continues to expand its partnerships with originators to boost the rate of Saudi homeownership to 70% by 2030, in line with the objectives of the Vision 2030 housing program through supporting the home financing market and originators by providing the best innovative financial solutions and increase the home finance sector’s contribution to the GDP.

He added that the agreement signed with SNB is the largest home refinancing agreement in the banking sector, this is evidence of the company's continuous support for home financing originators through liquidity and risk management solutions to provide affordable home financing and to increase home ownership.

Majed Al Ghamdi, Chief Executive Officer of Retail at SNB, confirmed that our long-term partnership with SRC will enable us to provide housing finance solutions that fulfil the needs and requirements of Saudi families. The liquidity generated through this partnership will enable us to provide more home financing solutions to citizens in the Kingdom, broadening our already-large beneficiary base. The partnership also provides us with the capital and risk management tools that are critical to our overall operations and capital allocation to achieve the objectives of the Housing Program - one of the Kingdom's Vision 2030 programs.

The home financing sector has witnessed a significant growth in recent years in the number of loans, reaching 300,000 loans worth SAR 140 billion in 2020. In 2021, more than 260,000 contracts worth more than SAR 150 billion were registered.

-Ends-

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.

For more information please visit: http://srco.com.sa/

For press enquiries, please contact: 
Saudi Real Estate Refinance Company (SRC)
info@srco.com.sa

About the Public Investment Fund (PIF):

The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world, driving the economic transformation of Saudi Arabia for the benefit of its people while helping shape the future global economy. PIF is building a world-class portfolio through investments in attractive, long-term opportunities across diverse industries and asset classes internationally, while unlocking new sectors at home. PIF works alongside global strategic partners and renowned investment managers and acts as the Kingdom of Saudi Arabia’s primary investment arm aiming toward generating long-term value for the Kingdom of Saudi Arabia in line with Vision 2030.

More information can be found at www.pif.gov.sa
Media Contact: media@pif.gov.

About the Saudi National Bank (SNB)

The Saudi National Bank (SNB) is the largest financial institution in Saudi Arabia and one of the largest powerhouses in the region. SNB plays a vital role in supporting economic transformation in Saudi Arabia by transforming the local banking sector and catalyzing the delivery of Saudi Arabia’s Vision 2030.

SNB’s vision is to be a premier financial and banking service provider locally and regionally through the fulfilment of strategic aspirations: to be number one in revenues, number one in profit, the best in customer service, the best digital bank, and the employer of choice, and the best Shariah-compliant products service provider in the world. The Bank’s effort to achieve these aspirations is reflected in achieving record annual profits for the eighth consecutive year.