Saudi Real Estate Refinance Company (SRC), a wholly-owned subsidiary of the Public Investment Fund (PIF), will sell a $266.6 million real estate financing portfolio with Saudi National Bank (SNB).
The agreement between the SRC and SNB, the largest bank refinancing in the Kingdom, was signed by Mr. Fabrice Susini, CEO of SRC, and Mr. Majed Al Ghamdi, Chief Executive Officer of Retail at SNB, in the presence of HE Majid bin Abdullah Al Hogail, Minister of Municipal and Rural Affairs and Housing and Mr. Ammar Alkhudairy, Chairman of SNB.
The agreement aims to refinance the portfolio to provide long-term liquidity to the Saudi home finance market and facilitate risk management in the sector.
Mr. Fabrice Susini, CEO of SRC stated that, in line with the goals of the Vision 2030 Housing Program, the company continues to expand its partnership with subsidiaries to increase its homeownership rate to 70 percent by 2030, by providing better innovative financial solutions and increasing the contribution of the home finance sector to GDP by supporting the home financing market and the originators.
Mr. Susini further added that the agreement signed with SNB is the largest housing refinancing agreement in the banking sector, a testament to the company’s support for home financing makers through liquidity and risk management solutions to provide reasonable home financing and raise homeownership rates
Mr. Majed Al Ghamdi, Chief Executive Officer of Retail at SNB, confirmed that the long-term partnership with SRC will enable the Bank to provide housing finance solutions that meet the needs and requirements of Saudi families. The liquidity created by this partnership will also provide more home financing solutions to citizens in the Kingdom, thereby expanding the bank’s vast beneficiary base.
The CEO of Retail at SNB further added that the partnership also provides capital and risk management tools that are crucial to the Bank’s overall operations and capital allocation to achieve the goals of the Kingdom’s Vision 2030’s Housing Program.
The home financing sector has witnessed significant growth in recent years in the number of loans, reaching 300,000 loans worth $37.3 billion in 2020. In 2021, more than 260,000 contracts worth more than $39.99 billion were registered.
Established in 2017, the Saudi Real Estate Refinance Company (SRC) aims to expand the housing finance market in the Kingdom of Saudi Arabia by enabling innovators to offer long-term and short-term financial solutions to home buyers. SRC has played a key role in the National Transformation Plan 2020 and Vision 2030 Housing Sector Plan to increase the number of citizens owning their homes to 60 percent by 2020.
