Latest news with #SaudiRealEstateRefinanceCompany
Argaam
17-04-2025
- Business
- Argaam
Fitch: Saudi bank liquidity could benefit from NPL securitisation
Fitch Ratings said on Wednesday that liquidity conditions and capital ratios at Saudi banks could gain from the potential securitisation of non-performing loans (NPLs), noting that such a move would help diversify funding sources and support the development of the Kingdom's debt markets. In a report, the agency forecast credit growth in Saudi Arabia's banking sector of between 12% and 14% in 2025, with lending continuing to outpace deposits. Fitch added that the nominal value of bonds issued against securitised NPLs would likely be close to the net balance sheet value of those loans, based on existing provisions. The agency also noted that banks may consider securitising written-off exposures. However, the nominal value of bonds issued against these would be limited, given that most of the exposures are severely impaired. Saudi banks wrote off SAR 43 billion ($11.5 billion) in bad debts between 2022 and 2024. Fitch believes that any increase in core capital ratios as a result of NPL securitisation would be modest, indicating that even a full securitisation of NPL portfolios would trigger only limited provision reversals. As of the end of 2024, the sector's net stock of NPLs stood at just 0.5% of total risk-weighted assets, with asset growth expected to continue. The report said that persistent lending growth outstripping deposit growth in 2025 will widen the deposit gap. While securitising all NPLs would not significantly narrow this gap, Fitch said it would have little impact on its credit growth outlook for the sector or on the financing of Saudi Arabia's giga-projects, given the relatively low NPL ratios at Saudi banks. The agency also noted that banks could expand their securitisation of residential mortgage loans, saying this would have a meaningful impact on funding diversification and the development of debt markets. Some banks have already issued limited tranches of mortgage-backed securities through the Saudi Real Estate Refinance Company (SRC), though Fitch said the use of mortgage securitisation remains modest.
Zawya
04-03-2025
- Business
- Zawya
Saudi PIF unit inks $906mln 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. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
03-03-2025
- Business
- Trade Arabia
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.
Zawya
02-03-2025
- Business
- Zawya
SRC and SNB sign SAR 3.4bln mortgage portfolio acquisition agreement
Riyadh – The Saudi Real Estate Refinance Company (SRC), a PIF company, has signed a SAR 3.4 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. The agreement was signed by Tareq Al-Sadhan, CEO of SNB, and Majeed Al-Abduljabbar, CEO of SRC, 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. Tareq Al-Sadhan, CEO of SNB, 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%.' 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. Majeed Al-Abduljabbar, CEO of SRC, commented: 'This strategic agreement with SNB reflects our 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.' This transaction is part of SRC's ongoing mortgage portfolio acquisitions, reinforcing its 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. 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. 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.
Asharq Al-Awsat
22-02-2025
- Business
- Asharq Al-Awsat
Saudi Housing Minister Attends Listing of SRC's First Int'l Sukuk Program on London Stock Exchange
In a strategic move that reinforces Saudi Arabia's position in global financial markets, Minister of Municipalities and Housing and Chairman of the Saudi Real Estate Refinance Company (SRC) Majed Al-Hogail visited London to oversee the listing of SRC's first international sukuk Program, valued at $5 billion, on the London Stock Exchange. The listing marks a pivotal step in strengthening the Kingdom's mortgage finance market by enhancing liquidity, attracting foreign investments, and supporting the objectives of Saudi Vision 2030. It also aligns with the goals of the Financial Sector Development Program and the Public Investment Fund (PIF) initiatives by advancing the housing sector and enabling citizens to access sustainable home financing. The listing ceremony was attended by Saudi Ambassador to the United Kingdom Prince Khalid bin Bandar bin Sultan, Lord Mayor of the City of London Alastair King and senior officials from the financial and investment sectors, reported the Saudi Press Agency on Saturday. Al-Hogail emphasized that this listing reflects the strength of the Saudi economy and the attractiveness of the Kingdom's real estate market to international investors. The international sukuk issuance facilitates Saudi Arabia's integration into global financial markets, bolsters foreign direct investment, and diversifies funding sources for the housing sector. SRC plays a critical role in ensuring the sustainability of mortgage finance by developing innovative financing solutions that support mortgage lenders and expand financing options for citizens at competitive rates, he added. The sukuk issuance aims to stimulate foreign investment in the housing market, as Saudi Arabia seeks to increase homeownership rates to 70% by 2030 through sustainable financing solutions and the development of a secondary mortgage market, he went on to say. SRC CEO Majid Al-Abd Al-Jabbar stressed that the successful listing of the Sukuk Program reflects global market confidence in Saudi Arabia's economy and the sustainability of its mortgage finance sector. This milestone will pave the way for new strategic partnerships with leading global financial institutions, enhancing SRC's ability to provide advanced and sustainable financing solutions, he stated. This move further strengthens Saudi Arabia's real estate market as a global investment hub, benefiting from a robust economic environment, flexible regulations, and the Kingdom's strategy to attract international investments ultimately contributing to the sustainable development of the housing sector. The Saudi Real Estate Refinance Company was established by the Public Investment Fund in 2017 with the aim of developing the Kingdom's real estate finance market. Licensed by the Saudi Central Bank to operate in the field of real estate refinancing, SRC plays a pivotal role in achieving the objectives of the Housing Program under Saudi Vision 2030, which seeks to increase homeownership rates among Saudi citizens. This is accomplished by providing liquidity to financiers, enabling them to offer affordable housing finance to individuals, and working closely with partners to support the Kingdom's housing ecosystem.
