Saudi Real Estate Refinance Company (SRC) has launched a new residential mortgage-backed securities issuance backed by a SAR420 million portfolio of home finance assets originated by six financing companies.
The issuance is designed to improve liquidity in Saudi Arabia’s mortgage market, broaden the investor base and provide banks and finance companies with additional funding. By refinancing existing mortgage portfolios, SRC said lenders can free up capital to support new home financing.
The securities received national-scale ratings of AAAsf (sau), with a stable outlook, from Fitch, and Aaa.sa (sf) from Moody’s. Both ratings represent the highest category on the agencies’ national scales, according to the announcement, although they do not mean the securities are risk-free.
The transaction follows SRC’s first local residential mortgage-backed securities issuance under its domestic securitisation programme in August 2025. The company is developing Saudi Arabia’s secondary mortgage market by purchasing mortgage portfolios from lenders, providing short- and long-term funding, and packaging portfolios into securities for investors.
SRC, established in 2017 and owned by the Public Investment Fund, operates under a Saudi Central Bank licence and supervision. The company does not provide mortgages directly to individuals. Its role is to support lenders and expand the flow of capital through the housing finance system.
Source: Jawlah
