• Strategic Refinancing Agreement: Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has formalized an extended refinancing agreement with Alrajhi Bank, amounting to an additional 5.8 billion Saudi riyals ($1.55 billion).
• Impact on theHousing Market: Majeed Fahad Alabduljabbar, CEO of SRC, highlighted the profound impact of the extended partnership on the growth of Saudi Arabia’s housing market.
• Enhanced Home Financing Accessibility: The initiative is designed to enhance accessibility to home financing, aiming to foster higher home ownership rates.
Saudi Real Estate Refinance Company (SRC), a wholly-owned subsidiary of the Public Investment Fund (PIF), has solidified a new chapter in its collaboration with Saudi-listed Alrajhi Bank.
The extended refinancing agreement, totaling an additional 5.8 billion Saudi riyals ($1.55 billion), marks a significant milestone in their strategic partnership.
In a statement, SRC revealed that the latest deal brings the cumulative value of refinancing agreements between the two entities to SAR 10.8 billion.
Majeed Fahad Alabduljabbar, CEO of SRC, emphasized the profound impact of the extended partnership on the growth of the Kingdom’s housing market.
“The extension of our partnership with Alrajhi Bank speaks volumes about our combined efforts to grow the Kingdom’s housing market further,” said Alabduljabbar.
The initiative is geared towards enhancing accessibility to home financing, ultimately fostering higher homeownership rates.
This aligns with SRC’s broader mission to contribute to developing the real estate sector in Saudi Arabia.
In a separate development, SRC successfully concluded its latest sukuk issuance in December 2023, raising SAR 3.5 billion.
The issuance, part of its SAR 20 billion government-guaranteed sukuk program, comprised two tranches with dual tenors of five and seven years.
The continued collaboration between SRC and Alrajhi Bank underscores the commitment to supporting the Kingdom’s real estate sector, facilitating sustainable growth, and promoting increased homeownership.
The transaction is poised to have a transformative impact on the housing landscape.
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