Saudi PIF unit launches second residential mortgage-backed securities issuance

14/10/2026 04:49 AST

The Saudi Real Estate Refinance Company (SRC), a PIF company, has announced the launch of its second Residential Mortgage-Backed Securities (RMBS) issuance, marking a significant step in the development of the kingdom's securitisation market.

It is the first domestic issuance of its kind to receive published credit ratings from Moody's Ratings and Fitch Ratings.

The issuance marks an important evolution in the development of the kingdom's secondary real estate finance market, moving from the establishment of a new investment asset class to strengthening its credit framework and providing an independent assessment of its risks.

This enhances transparency, broadens institutional investor participation and strengthens the integration of the real estate finance ecosystem with capital markets.

This development builds on SRC's inaugural issuance in August 2025, which helped establish a domestic model for securitizing residential mortgage financings and connecting financing portfolios with capital markets.

The new issuance adds an institutional credit dimension to that model, supporting the development of a sustainable and scalable issuance market and providing a foundation for the continued development of this investment asset class in the kingdom.

On the new launch, Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, said developing the secondary real estate finance market was a key pillar in improving the efficiency of the housing finance ecosystem by broadening sources of long-term liquidity, diversifying investment instruments and strengthening the link between real estate finance and capital markets.

"This issuance builds on ongoing efforts to develop a more advanced and sustainable real estate finance market, underpinned by a diverse range of financing instruments, clear credit frameworks and a broader investor base," stated Al Hogail.

"The progress achieved demonstrates the ability of the kingdom's financial ecosystem to develop new investment instruments that support the growth of the housing sector, improve capital allocation efficiency and create broader opportunities for institutional investment," he added.

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