PROJECTS: Saudi’s SRC, REDF sign $2.7bln real estate refinancing pact

PROJECTS: Saudi’s SRC, REDF sign $2.7bln real estate refinancing pact

Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), announced on Monday that it has signed a refinancing partnership agreement with the Real Estate Development Fund (REDF) to refinance a real estate portfolio worth 10 billion Saudi riyals ($2.7 billion). SRC said in a statement that the agreement aims to increase the liquidity in the home financing market in the Kingdom, reduce the cost of home financing for Saudi families and support the objectives of the housing programme under Vision 2030 to raise homeownership rates by 70 percent by the year 2030. The agreement also supports REDF in enhancing its financial stability. The agreement was signed by Mansour bin Madi, CEO of REDF and Fabrice Susini, CEO of SRC. Susini said the agreement aims to increase the supply of home loans for affordable housing and develop a robust secondary home financing market for the benefit of the primary housing market. “This is our largest agreement ...with a home financing originator and with this, we are unlocking opportunities for the growth of home financing market in the Kingdom by creating low-risk tools in partnership with financial institutions.” Mansour bin Madi said the agreement also fulfils the