SRC signs refinancing deal with Banque Saudi Fransi, SABB

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 and Saudi British Bank (SABB), at the Financial Sector Conference held in Riyadh last week.

The aim of this agreement is in keeping with the purpose of injecting liquidity into Saudi housing finance market, a statement said.

The agreement is among multiple mortgage portfolio acquisitions worth SAR 750 million that SRC signed with local banks and specialist mortgage providers in Saudi Arabia. 

“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,” SRC’s CEO Fabrice Susini said.

The announcement comes shortly after SRC completed Sukuk issuances of SAR 750 million, making it the first non-sovereign issuer in Saudi Arabia in 2019. The two-tranche issuance was under SRC’s SAR 11 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 SAR 800 billion within the next decade,” the statement added.