PIF’s SRC extends refinancing deal with Alrajhi Bank, total value hits SAR10.8bn

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Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), has extended its refinancing agreement with Alrajhi Bank with an additional SAR5.8bn, bringing the total value of refinancing agreements between the two entities to SAR10.8bn.

Read: Saudi’s SRC, Alrajhi Bank sign landmark refinancing deal

SRC was established in 2017 by PIF after obtaining a license from Saudi Central Bank to operate in the market and as part of the government initiatives to support the Vision 2030 Housing Program, support the growth of housing finance in Saudi Arabia, and establish a secondary housing finance market.

SRC focused on supporting Vision 2030 Housing Program

Majeed Fahad Alabduljabbar, CEO of SRC said: “The extension of our partnership with Alrajhi Bank speaks volumes about our combined efforts to take part in further growing the kingdom’s housing market. As we continue to deepen our ties with leading financial institutions, our objective remains clear: to establish a benchmark secondary housing finance market in the kingdom.

“The extension of this agreement marks a significant stride in advancing the goals of the Vision 2030 Housing Program. This initiative aims to facilitate increased accessibility to home financing, therefore, fostering greater rates of home ownership.” 

In other news, in November 2023, the company completed its latest sukuk issuance of SAR3.5bn.

The issuance was offered in five and seven-year dual tenors, marking the final two tranches under its SAR20bn government-guaranteed sukuk programme.