“Saudi Real Estate Refinancing” launches a new issuance for securitizing real estate financing

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The Saudi Real Estate Refinancing Company (SRC), one of the Public Investment Fund companies, launched the second issue of securities backed by residential real estate financing (RMBS). In a qualitative step to develop the securitization market in the Kingdom, as it is the first local issue of this category to obtain announced credit ratings from Moody’s and Fitch credit ratings agencies.

The issuance represents a development in building the secondary market for real estate financing in the Kingdom, by moving from establishing a new category of investment assets to strengthening its credit structure and providing an independent assessment of its risks, in a way that supports transparency, expands the participation of institutional investors, and enhances the integration of the real estate financing system with the capital markets.

This development comes as an extension of the first issuance that the company launched in August 2025, and contributed to establishing a local model for securitizing residential real estate financing and linking financing portfolios to financial markets.

The new issuance adds an institutional credit dimension to this model, supporting the building of a sustainable market for scalable issuances, and providing a base for developing this category of investment assets in the Kingdom.

In this context, the Minister of Municipalities and Housing, Chairman of the Board of Directors of the Saudi Real Estate Refinancing Company, Majed bin Abdullah Al-Hogail, stressed that developing the secondary market for real estate financing represents a fundamental pillar for enhancing the efficiency of the housing financing system, by expanding sources of long-term liquidity, diversifying investment tools, and strengthening the link of real estate financing to capital markets.

He said, "This issuance comes as an extension of efforts to build a more advanced and sustainable real estate financing market, based on the diversity of financing tools, clarity of credit frameworks, and broadening of the investor base. It reflects what has been achieved in the ability of the financial system in the Kingdom to develop new investment tools that support the growth of the residential sector, enhance the efficiency of capital investment, and open broader horizons for institutional investment."

It is noteworthy that developing the secondary market for real estate financing goes beyond providing liquidity to building a more integrated system that allows financing agencies to manage their capital efficiently, supports the sustainability of financing sources, and enhances the sector’s ability to meet growing housing needs. He stressed the continuation of work to consolidate the components of this market and expand its growth opportunities, in keeping with the development of the Saudi financial market and supporting the goals of Saudi Vision 2030.

The second issuance is based on a portfolio of residential real estate financing worth approximately $112 million (420 million riyals), established by six financing entities.

The securities received a credit rating of AAAsf (sau) on the national scale from Fitch, with a stable outlook, while Moody's gave them a rating of Aaa.sa (sf) on the national scale. The two ratings represent the highest rating category on the national scale for both agencies.

These ratings provide an independent credit evaluation of securities, which enhances the transparency of the issue and the comparability of its credit characteristics, supports the confidence of institutional investors in this class of assets, and contributes to expanding the base of participants in the local securitization market.

For his part, CEO of the Saudi Real Estate Refinancing Company, Majeed bin Fahd Al-Abdul-Jabbar, said, “The second version builds on what the first version achieved by establishing a local model for securitizing residential real estate financing, and adds to it independent credit ratings that enhance the clarity of the assets’ characteristics and allow them to be evaluated according to approved credit standards.”

He explained that the issuance supports the company’s efforts to provide long-term financing sources to real estate financing entities, enhance their available liquidity, and raise the efficiency of capital management, in a way that helps support the sustainability of residential real estate financing and develop the secondary market in the Kingdom.

The issuance comes within the strategy of the Saudi Real Estate Refinancing Company aimed at building a sustainable market for securities backed by residential real estate financing, expanding the investor base, developing financing tools that contribute to enhancing long-term liquidity, and supporting the integration of the secondary market for real estate financing with the Saudi capital markets.

It is noteworthy that the Public Investment Fund established the Saudi Real Estate Refinancing Company in 2017, after obtaining a license from the Saudi Central Bank, with the aim of developing the secondary market for real estate financing in the Kingdom. The company works to provide liquidity to financing agencies and enable them to provide various housing financing solutions to individuals, in a way that supports the sustainability of the real estate financing system and contributes to achieving the goals of the housing program within the Saudi Vision 2030.