Saudi Real Estate Refinance Co (SRC), an auxiliary of sovereign wealth fund Public Investment Fund, stated that it had decided to acquire SAR750m ($200m) worth of mortgages from local banks and mortgage financing companies.
This move was introduced subsequent to SRC completing a SAR750m sukuk issue with several tenors. Under this programme, it is allowed to issue up to SAR11bn of local currency denominated Islamic bonds.
SRC, created in 2017, is trying to enhance the kingdom’s secondary mortgage market. It intends to refinance 20 percent of Saudi Arabia’s mortgage market over the next decade.
SRC’s chief executive told Reuters last week that the company aims to issue up to SAR4bn ($1.07bn) of long-term sukuk this year, as it prepares to buy more home loan portfolios from mortgage financing companies and banks.