The Saudi Real Estate Refinance Company (SRC), which operates under the umbrella of the country’s sovereign wealth fund, the Public Investment Fund (PIF), has announced the expansion of its refinancing pact with the world-leading Islamic bank in terms of mortgage assets, Alrajhi Bank. The deal has been augmented by an additional SAR 5.8 billion (approximately $1.54 billion).
This expansion takes the cumulative refinancing agreements between the two entities to SAR 10.8 billion (around $2.8 billion).
The extended agreement underscores SRC’s critical function in bolstering the growth potential of banking and financing institutions. Through providing solutions for liquidity, capital management, and balance sheet risk mitigation, SRC facilitates the enhancement of new home loan assets generation. This, in turn, makes home financing more readily available.
Majeed Fahad Alabduljabbar, the CEO of SRC, expressed his views on the partnership: The extension of our partnership with Alrajhi Bank speaks volumes about our combined efforts to take part in further growing the kingdom’s housing market.
Alabduljabbar further commented, As we continue to strengthen our relationships with premier financial institutions, our aim is unswerving: to set a standard for a secondary housing finance market within the kingdom.
He also noted that the agreement is a key step in achieving the objectives of the Vision 2030 Housing Program, which aspires to boost the accessibility of home financing and, consequently, increase home ownership rates.
Established in 2017 by the Public Investment Fund and licensed by the Saudi Central Bank, SRC’s formation was a strategic move to back the Vision 2030 Housing Program. The program’s goal is to be a foundational and influential force in the evolution and sustainability of housing finance in Saudi Arabia, including the establishment of a robust secondary housing finance market.