Saudi PIF refinance subsidiary signs partnership agreement with Deutsche Gulf Finance

Saudi Real Estate Refinance Company (SRC), a subsidiary of Public Investment Fund (PIF), and Deutsche Gulf Finance (DGF) has signed a partnership agreement today.

As part of the partnership agreement, SRC will regularly acquire portfolio of mortgages originated by DGF on basis of a portfolio purchase programme as well as a short-term Murabaha financing facility that allows warehousing the loans. 

The programme will be deployed over the next 12 months, the company said in a statement.

DGF, after the agreement, will increase its offer of long term fixed-rate (LTFR) mortgages with a maturity of up to 25 years, providing citizens with stability and safety throughout the tenure of the loan.  

“Through improved funding and liquidity conditions, we have started to reshape the market and create the conditions of an effective secondary mortgage market in the Kingdom, therefore contributing to make home financing more accessible to Saudi homeowners,” SRC CEO Fabrice Susini said.

As result of the agreement, DGF will reduce its rates by 36 percent as a show of commitment to provide affordable housing solutions to Saudi citizens. 

“Today, we sign this partnership agreement as an extension of the series of initiatives aimed to develop the housing sector and providing the best financing solutions suitable for borrowers,” Mohammad Al Dowesh, acting CEO of DGF, said.