«SRC» السعودية تطلق أول إصدار أوراق مالية مدعومة بالتمويلات السكنية

The Saudi Company for Mortgage Refinancing (SRC) - one of the Public Investment Fund companies - launched its first Residential Mortgage-Backed Securities (RMBS) issuance as part of the local securitization program to enhance the mortgage financing market.

This issuance is part of the company's efforts to develop financial markets and enhance liquidity in the mortgage financing sector by creating a new asset class for the first time in the Saudi market; to contribute to deepening financial markets and diversifying investment tools through the securitization of residential mortgage financing.

Securitization - which gives rise to securities backed by residential mortgage financing - provides investors with qualitative investment opportunities in high credit quality assets with medium maturities, as this operation was executed within strict regulatory frameworks and controls, reflecting the maturity of the investment environment in the Kingdom, enhancing investor confidence in local financial markets, and supporting the stability of the financial sector in the long term.

The Minister of Municipal and Rural Affairs and Housing, and Chairman of the Board of Directors of the Saudi Company for Mortgage Refinancing, Majid bin Abdullah Al-Hoqail, confirmed that the launch of the first issuance of securities backed by residential mortgage financing in the Saudi market is a strategic step towards developing the mortgage financing market in the Kingdom and enhancing its attractiveness for local and foreign investments.

Al-Hoqail pointed out that this step contributes to providing innovative financing tools that align with the objectives of Saudi Vision 2030 in increasing the home ownership rate and enabling more Saudi families to obtain suitable housing, thereby enhancing the sustainability of economic growth and quality of life.

For his part, the CEO of the Saudi Company for Mortgage Refinancing, Majid bin Fahd Al-Abduljabbar, explained that the launch of the first issuance of securities backed by residential mortgage financing represents a qualitative leap in the development of the secondary mortgage financing market in the Kingdom, indicating that this achievement was made possible thanks to close cooperation with strategic partners, namely: the Saudi Central Bank, the Capital Market Authority, the Financial and Housing Sector Development Programs, and the Public Investment Fund.

Al-Abduljabbar noted that this operation contributes to enhancing liquidity in the mortgage financing market, expanding the investor base, and enabling financing entities to manage capital and risks more efficiently. It also contributes to deepening financial markets and diversifying the national economy, as it is a first step in attracting local and international investors.

This launch reflects the prominent position of the company in developing the secondary mortgage financing market and confirms investor confidence in the Saudi regulatory environment and its readiness to embrace advanced financial instruments that keep pace with developments in financial markets.

It is worth mentioning that the Saudi Company for Mortgage Refinancing was established in 2017 with the aim of developing the mortgage financing market in the Kingdom, after obtaining a license from the Saudi Central Bank. It works to achieve the objectives of the Housing Program - one of the programs of Saudi Vision 2030 - to increase the home ownership rate among Saudi citizens by providing liquidity to mortgage financiers and offering accessible financing options for Saudi families.