Business · Markets · 1 hr ago
Saudi mortgage refinancing firm issues locally rated mortgage-backed securities
Saudi Arabia’s real estate refinancing company issued its second mortgage-backed securities deal.
The securities are backed by residential mortgage financing from a portfolio worth about 420 million riyals, built from loans provided by six financing companies.
The company, established by the Public Investment Fund, is working to develop a secondary market where mortgage financing can be linked to capital markets.
Moody’s and Fitch gave the securities their top national-scale ratings, making this the first local issue of this type with published ratings from the two agencies.
Independent ratings can help investors assess the securities and may encourage more institutional investors to participate.
The new issue builds on a first deal launched in August 2025, as the company continues efforts to expand the market and provide longer-term funding for mortgage finance providers.
Saudi Real Estate Refinance Company issued its second residential mortgage-backed securities offering.
The offering is the first local issue of this type to receive publicly announced credit ratings from Moody’s and Fitch.
It is backed by a residential mortgage portfolio worth about 420 million riyals, sourced from six financing entities.
Fitch assigned the securities a national-scale rating of AAAsf(sau) with a stable outlook, while Moody’s assigned Aaa.sa (sf).
The company said the ratings are intended to support transparency and institutional investor participation in Saudi Arabia’s mortgage securitization market.
- Who
- Saudi Real Estate Refinance Company (SRC), a company of the Public Investment Fund, issued the securities.
- What
- It issued residential mortgage-backed securities with publicly announced local-scale credit ratings from Fitch and Moody’s.
- When
- 2026-10-13. The article says the first issue was launched in August 2025.
- Where
- Saudi Arabia.
- Why
- The issue is intended to develop the secondary mortgage market, provide long-term liquidity to financing entities, and broaden institutional investment.
This story does not have two clearly opposing sides.
SRC launched its first residential mortgage-backed securities issue, establishing a local securitization model.
Al Eqtisadiah reported that SRC had launched its second issue, with local-scale ratings from Fitch and Moody’s.
- Issuer
- Saudi Real Estate Refinance Company (SRC)
- Portfolio value
- About 420 million riyals
- Portfolio sources
- Six financing entities
- Fitch rating
- AAAsf(sau), national scale, stable outlook
- Moody’s rating
- Aaa.sa (sf), national scale
What people are saying
يأتي هذا الإصدار امتدادًا لجهود بناء سوق تمويل عقاري أكثر تطورًا واستدامة، تقوم على تنوع أدوات التمويل، ووضوح الأطر الائتمانية، واتساع قاعدة المستثمرين.
يبني الإصدار الثاني على ما حققه الإصدار الأول من تأسيس نموذج محلي لتوريق التمويلات العقارية السكنية، ويضيف إليه تصنيفات ائتمانية مستقلة تعزز وضوح خصائص الأصول وتتيح تقييمها وفق معايير ائتمانية معتمدة.
Sources
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