Saudi PIF unit inks $906m mortgage portfolio acquisition deal
The Saudi Real Estate Refinance Company (SRC), a PIF company, has signed a SAR3.4 billion mortgage portfolio acquisition agreement with the Saudi National Bank (SNB), Saudi Arabia's largest financial institution.
The deal marks one of the largest mortgage refinancing transactions in Saudi Arabia.
It is part of SRC's ongoing mortgage portfolio acquisitions, reinforcing the group's role as a key liquidity provider in the secondary mortgage market.
SNB and SRC further solidify their positions as drivers of innovative financial solutions and economic growth through this collaboration, it stated.
By securitizing acquired mortgage portfolios, SRC is driving the evolution of Saudi Arabia's secondary mortgage market, ensuring long-term financial stability and strengthening Saudi Arabia's position as a regional leader in housing finance, it added.
The agreement was signed by Tareq Al Sadhan, CEO of SNB, and Majeed Al Abduljabbar, CEO of SRC, thus reinforcing their shared commitment to expanding homeownership opportunities for Saudi citizens by refinancing the mortgage portfolio, thereby injecting long-term liquidity into Saudi Arabia's residential mortgage market.
The agreement also paves the way for developing Residential Mortgage-Backed Securities (RMBS), enhancing market liquidity and activity, while increasing its attractiveness to local and international investors, it stated.
Al Sadhan said: "As the kingdom's leading provider of mortgage financing, SNB remains committed to supporting homeownership, enhancing market liquidity, and delivering competitive housing finance solutions."
"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%.," he stated.
Al Sadhan further emphasized that the partnership reinforces SNB's position in the kingdom's secondary mortgage market and strengthens its role as a strategic partner in SRC's Originate-To-Distribute (OTD) model.
This collaboration enhances market liquidity, supports financial stability in the housing sector, and marks a key milestone in advancing long-term sustainable securitization efforts, he noted.
Abduljabbar said this strategic agreement with SNB reflects its shared vision to build a resilient and liquid housing finance ecosystem in Saudi Arabia.
"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," he added.
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