Saudi CBC signs $ 533 million refinancing deal with social insurance agency
DUBAI, Sept. 4 (Reuters) – Saudi Real Estate Refinance Company (SRC), the Saudi equivalent of US mortgage finance company Fannie Mae, announced on Saturday that it had reached a refinancing deal with the world’s largest social insurance agency of the country worth 2 billion riyals ($ 533.35 million).
As part of this agreement, the portfolio of a housing program supported by the General Social Insurance Organization (GOSI), Masakin, will be refinanced. Masakin offers fixed rate murabaha house financing for public and private sector workers as well as retirees.
Masakin is managed by the real estate finance company Dar Al Tamleek.
“The partnership with GOSI further accelerates our goal of increasing home ownership in the Kingdom,” said Fabrice Susini, Managing Director of SRC, in a statement.
“Our work with organizations such as GOSI makes real estate finance even more accessible and affordable for citizens while providing additional dynamism to the Kingdom’s strong real estate finance.”
SRC, a wholly-owned subsidiary of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), bought a mortgage portfolio worth over 3 billion riyals from the Saudi Agency last year. public pensions.
As part of the Vision 2030 reform program promoted by the de facto ruler of Saudi Arabia, Crown Prince Mohammed bin Salman, the kingdom aims to raise the homeownership rate to 70% by 2030.
Susini told Reuters in March that about 62% of Saudis now own a home, exceeding the government’s target of 60% by 2020.
($ 1 = 3.7499 riyals)
Reporting by Yousef Saba Editing by Helen Popper
Our standards: Thomson Reuters Trust Principles.