BUSINESS

SRC signs second portfolio purchase agreement with Banque Saudi Fransi

September 26, 2021

RIYADH — The Saudi Real Estate Refinance Company (SRC), a wholly owned company of the Public Investment Fund (PIF), Sunday signed a partnership agreement with Banque Saudi Fransi (BSF) to acquire a portion of its housing finance portfolio.

The agreement, SRC’s second acquisition of housing finance portfolio from BSF, will provide long-term liquidity to the housing market and showcases SRC’s role in developing a robust secondary home financing market to support originators in the Kingdom.

The agreement with BSF, the latest among several partnerships with banks and real estate finance companies operating in the Kingdom, showcases SRC’s systemic role in providing liquidity and risk management solutions through long-term relationships with primary originators. SRC aims to promote the growth and stability of the real estate finance market by facilitating the provision of more affordable home financing options for Saudi citizens.

SRC CEO Fabrice Susini said: “Our second portfolio acquisition agreement with BSF is a significant step towards cementing the relevance of SRC’s business model and growth. We have illustrated to primary originators in the Kingdom the crucial role we play in developing the housing market and supporting their businesses through liquidity and risk management solutions.

“Fostering long-term partnerships with originators is a key pillar of SRC’s strategy which aims to build continued relationships with originators to promote affordable housing and diversify financing options for Saudi families. Increasing the proportion of home ownership is in line with SRC’s goal of building a robust secondary market in the Kingdom.”

Rayan Fayez, managing director and CEO of BSF, said: “As a primary originator, our role is to provide Saudi citizens affordable home finance combined with a great experience, this agreement will allow us to cater to more citizens.

“SRC has played a vital role in ensuring that the Vision 2030 housing program objectives are being met and we expect ourselves to play a significant role in this by supporting them. At BSF, our aim is to deliver the highest quality to our customers at the best rates and this partnership is a testament to it.”

SRC has recently reduced its Long-Term Fixed Rates (LTFR) for home financing by 10 basis points. — SG


September 26, 2021
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