Saudi SRC Acquires $907 Million Mortgage Portfolio from SNB

The Saudi Real Estate Refinance Company (SRC) has secured a $907 million agreement with Saudi National Bank (SNB) to acquire a mortgage portfolio. This acquisition enables SNB, the largest bank in Saudi Arabia, to free up capital, while allowing SRC to further enhance liquidity in the mortgage sector. The deal aligns with SRC's mandate, backed by the Public Investment Fund, to increase the availability of affordable housing finance options for Saudis. The transaction is part of a broader strategy where SRC acquires mortgage books to provide shariah-compliant refinancing solutions. This acquisition marks a continuation of activities from the previous year, with SRC having acquired portfolios from Bidaya Finance and Al Rajhi Bank. The deal occurs in the context of tightened liquidity in Saudi banks due to deposits not matching loan growth, and it represents less than 2% of SNB's mortgage book. The Saudi government targets an expansion of the mortgage finance sector to SAR 1.3 trillion by 2030, coinciding with plans under the Vision 2030 programme to boost home ownership. Additionally, SRC recently sold a $2 billion sukuk under its global sukuk programme, reflecting its ongoing strategic efforts to build a resilient mortgage market.