Riyadh - Mubasher: The Saudi Real Estate Refinance Company (SRC), a fully owned subsidiary of the Public Investment Fund (PIF), signed a SAR 3.40 billion mortgage portfolio acquisition agreement with the Saudi National Bank (SNB).
The deal marks one of the largest mortgage refinancing transactions in Saudi Arabia, according to a press release.
It aligns with the two entities’ shared commitment to expanding homeownership opportunities for Saudi citizens and injecting long-term liquidity into the Kingdom’s residential mortgage market.
Tareq Al Sadhan, CEO of SNB, said: “This agreement underscores our dedication to empowering Saudi families with accessible and affordable home financing, in line with Saudi Vision 2030’s housing sector goals to increase homeownership rates to 70%.”
Al Sadhan added that the partnership bolsters SNB’s position in the Kingdom’s secondary mortgage market and reinforces its role as a strategic partner in SRC’s Originate-To-Distribute (OTD) model.
Majeed Al Abduljabbar, CEO of SRC, commented: “By providing liquidity and establishing a robust securitization framework, we are laying the foundation for a sustainable mortgage market that supports Saudi citizens in achieving homeownership.”
Meanwhile, this collaboration solidifies both SNB and SRC’s positions as drivers of innovative financial solutions and economic growth.
The partnership also supports developing Residential Mortgage-Backed Securities (RMBS), which will improve market liquidity and activity, while increasing its attractiveness to local and international investors.
SNB recently revealed its financial results for 2024, logging 5.91% higher net profits at SAR 21.19 billion, compared to SAR 20.01 billion in 2023.
