Saudi PIF’s SRC inks 133mln real estate financing deal with Riyad Bank
The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), has signed an agreement with Riyad Bank to acquire a SR500 million ($133.13 million) real estate financing portfolio, reports say.
Fabrice Susini, CEO of SRC and Tareq Al-Sadhan, CEO of Riyad Bank signed the deal in the presence of of Majid bin Abdullah Al Hogail, Minister of Municipal and Rural Affairs and Housing and Abdullah bin Mohammed Al-Issa, the Chairman of the Board of Directors at Riyad Bank.
The agreement is touted the second largest mortgage refinancing deal in the kingdom. Susini reportedly indicated that the agreement is part of SRC’s continued drive to expand and strengthen its partnerships with leading banks and lenders in the gulf country.
“Through these agreements, SRC provides liquidity and risk management solutions to support lenders and originators’ efforts to de-risk their balance sheets and enhance both their origination and distribution capabilities,” he said.
“As a result, Saudi citizens will have better chances to access home financing solutions that suit their needs which in turn will contribute to realizing the objectives of Vision 2030 to raise the percentage of residential ownership of Saudi families from 47% to more than 60% within four years.”
Al-Sadhan on the other hand notes that the long-term partnership with SRC will provide housing finance solutions that fulfill the needs and requirements of Saudi families.
“Through our partnership with SRC, we are able to continue offering our customers with flexible home financing solutions. The agreement with SRC aligns with our shared vision to increase homeownership in the kingdom, supporting the objectives of the Housing program- one of the kingdom’s Vision 2030 initiatives.”