The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), announced that it has signed a mortgage portfolio acquisition agreement with Bank Aljazira, in the presence of Minister of Housing and Chairman of SRC Majed Al-Hogail.
SRC will refinance SR250 million ($66.7 million) of mortgage receivables with the bank, with subsequent anticipated transactions in the future under the MoU.
The agreement was signed by Fabrice Susini, CEO of SRC, and Nabil Al-Hoshan, CEO and managing director of Bank Aljazira, at a special ceremony held in Riyadh.
Susini said: “Today’s agreement with Bank Aljazira reinforces our commitment to providing lenders with liquidity while developing innovative finance solutions, and in doing so we help our citizens to climb the housing ladder.”
Portfolio acquisitions such as these will help us ensure that we are able to refinance at least around 10 percent of the market by the end of 2020, and 20 percent of the market by 2028.”
Al-Hoshan said: “Since 2008, Bank Aljazira invested in the mortgage business and increasing its portfolio year on year which resulted in being one of the leaders in real estate finance market. We will continue our strong leadership in the real estate finance industry, and our commitment to customers is strengthened and improved by this transaction with SRC. I am especially proud that Bank Aljazira and SRC have joined hands to accelerate the mortgage ecosystem which will provide innovative solutions for the citizens.”
