Monday 1 November 2021

#SaudiArabia's SRC signs refinancing agreement for $2.7 bln property portfolio | Reuters

Saudi Arabia's SRC signs refinancing agreement for $2.7 bln property portfolio | Reuters

Saudi Real Estate Refinance Company (SRC) has signed a partnership agreement with Real Estate Development Fund (REDF) to refinance a real estate portfolio worth 10 billion riyals ($2.7 billion), SRC said in a statement.

REDF provides subsidised loans to Saudi home buyers and SRC, wholly owned by sovereign wealth fund the Public Investment Fund (PIF), is the Saudi equivalent of U.S. mortgage finance business Fannie Mae.

Founded in 2017, SRC buys home financing portfolios from local banks and real estate finance companies and packages them into shariah-compliant mortgage-backed securities for sale to domestic and international investors.

The agreement supports REDF by "enhancing its financial stability" and aims to boost liquidity in Saudi Arabia's home financing market, cut the cost of home financing for Saudis and support the country's housing objectives, the statement said.

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