Key Takeaways
- • The Saudi Real Estate Refinance Company (SRC), which operates under the Public Investment Fund umbrella, has unveiled its second residential mortgage-backed securities (RMBS) offering, according to IndexBox.
- • The offering is the first domestic RMBS issuance in the kingdom to obtain published credit ratings from both Moody's Ratings and Fitch Ratings.
- • SRC's second issuance is backed by a residential mortgage portfolio of nearly SAR 420 million (roughly $112 million), originated by six financing entities, according to SRC's publisher materials and Forbes Middle East.
- • The issuance follows SRC's debut RMBS in August 2025 and is intended to expand long-term liquidity sources and broaden the institutional investor base.
Summary
The Saudi Real Estate Refinance Company (SRC), which operates under the Public Investment Fund umbrella, has unveiled its second residential mortgage-backed securities (RMBS) offering, a development IndexBox describes as a notable milestone for the expansion of the kingdom's securitisation sector. According to the announcement, this is the first time a domestic issuance of this type has obtained published credit ratings from both Moody's Ratings and Fitch Ratings.
The offering builds on SRC's debut issuance in August 2025, which established a domestic model for securitising residential mortgage financings and linking mortgage portfolios with capital markets. The latest transaction adds an institutional credit element to that framework. Per the publisher's coverage, the second issuance is backed by a residential mortgage portfolio worth nearly SAR 420 million, originated by six financing entities. Forbes Middle East characterised the deal as backed by a $112 million portfolio.
Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, said that developing the secondary real estate finance market is a crucial component in improving the efficiency of the housing finance ecosystem. He cited expanded long-term liquidity sources, diversified investment instruments and a stronger connection between real estate finance and capital markets. Al-Hogail added that the transaction reflects the kingdom's capacity to create new investment instruments that support housing sector growth and expand opportunities for institutional investment.
SRC expects the independent ratings to improve transparency, broaden institutional investor participation and deepen integration between the real estate finance ecosystem and capital markets. The company describes the issuance as a step toward a sustainable and scalable issuance market for the asset class.
The offering builds on SRC's debut issuance in August 2025, which established a domestic model for securitising residential mortgage financings and linking mortgage portfolios with capital markets. The latest transaction adds an institutional credit element to that framework. Per the publisher's coverage, the second issuance is backed by a residential mortgage portfolio worth nearly SAR 420 million, originated by six financing entities. Forbes Middle East characterised the deal as backed by a $112 million portfolio.
Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, said that developing the secondary real estate finance market is a crucial component in improving the efficiency of the housing finance ecosystem. He cited expanded long-term liquidity sources, diversified investment instruments and a stronger connection between real estate finance and capital markets. Al-Hogail added that the transaction reflects the kingdom's capacity to create new investment instruments that support housing sector growth and expand opportunities for institutional investment.
SRC expects the independent ratings to improve transparency, broaden institutional investor participation and deepen integration between the real estate finance ecosystem and capital markets. The company describes the issuance as a step toward a sustainable and scalable issuance market for the asset class.
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