‎SRC launches second mortgage-backed securities transaction

Logo Design of Saudi Real Estate Refinance Co.( SRC)

The Saudi Real Estate Refinance Co. (SRC), a PIF-owned subsidiary, revealed the launch of the Kingdom’s 2nd domestic mortgage-backed securities (RMBS), the very first domestic issuance of its kind to get openly revealed credit scores from Moody’s and Fitch.

The 2nd issuance is backed by a domestic home loan portfolio worth almost SAR 420 million, stemmed by 6 funding entities.

The securities were designated a AAAsf (sau) ranking on its nationwide scale by Fitch, with a steady outlook, while Moody’s designated them an Aaa.sa (sf) ranking on its nationwide scale. Both scores represent the greatest score classification on the particular companies’ nationwide scales.

These scores offer an independent credit evaluation of the securities, improving issuance openness and the comparability of their credit attributes. They likewise support institutional financier self-confidence in this property class and aid widen involvement in Saudi Arabia’s domestic securitization market.

Majid Al-Hogail, Minister of Municipalities and Housing, and Chairman of SRC, stated that establishing the secondary home mortgage market boosts the effectiveness of the real estate financing system by broadening long-lasting liquidity sources, diversifying financial investment instruments, and reinforcing the links in between home mortgage financing and capital markets.

Establishing this market allows funding entities to handle their capital more effectively, supports the sustainability of financing sources, and improves the sector’s capability to satisfy growing real estate requirements, he included.

SRC CEO Majeed Al-Abduljabbar commented that diversifying the sources of possessions in the portfolio, together with independent credit scores, would assist establish this class of securities and boost its attract institutional financiers.

He described that the issuance supports the arrangement of long-lasting financing sources for home loan financing suppliers, reinforces their offered liquidity, and enhances capital management performance, thus adding to the sustainability of property home mortgage financing and the advancement of the Kingdom’s secondary market.

The issuance develops on SRC’s very first RMBS issuance, released in August 2025, which assisted develop a domestic design for securitizing domestic home mortgage funding and connecting funding portfolios to capital markets.