The Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund (PIF), has signed a portfolio purchase agreement with Alrajhi Bank.
Alrajhi Bank is the world’s largest Islamic bank by mortgage assets and market cap. The deal is worth more than SAR 5 billion ($1,330,905,750 approximately) and is the largest of its kind in the Saudi banking industry.
The agreement was signed in the presence of Mr. Majid bin Abdullah Al Hogail, Minister of Municipal and Rural Affairs and Housing, SRC said in a statement.
The agreement reflects SRC’s ongoing efforts to support the development of the residential real estate finance sector by expanding its refinancing portfolio and creating a stable secondary real estate market in the kingdom.
The deal is part of SRC’s efforts to accelerate growth in the housing market and develop a best-in-class secondary mortgage market in the kingdom.
SRC chief executive officer, Fabrice Susini, called the agreement a significant milestone and said that it would help accelerate growth in the housing market and expand citizens’ access to homeownership.
“It is part of our strategic partnerships with leading financiers and originators which underpin our efforts to develop a best-in-class secondary mortgage market in the kingdom. In addition, by providing our solutions, we continue to help accelerate the growth of affordable home financing and expanding citizens’ access to homeownership, in line with Vision 2030 goals,” Susini said.
Alrajhi Bank chief executive officer, Waleed Abdullah Almogbel, said that the deal would support the bank’s ongoing efforts to offer customers more access to flexible and affordable home financing solutions.
“The deal with SRC strategically enhances our mortgage solutions and supports our established capabilities to address the needs of a broad customer base and the increasing demand for home ownership in the kingdom,” Almogbel added.
This agreement is part of a series of deals aimed at broadening Saudi citizens’ access to more affordable and flexible home financing solutions.
Through these agreements, SRC provides liquidity, capital management, and balance sheet de-risking solutions to enhance real estate financiers’ and originators’ financing capacity.
