Home GCC Saudi Arabia Saudi Arabia’s Fannie Mae eyes debut international bond in 2021 The refinancing company was set up to buy home loans from banks and other finance companies, freeing up lenders to book more mortgages by Bloomberg March 10, 2021 Saudi Arabia’s mortgage-refinancing firm is planning to sell its first international bond later this year as the kingdom’s equivalent of Fannie Mae looks to boost its activities buying up home loans from banks. The Saudi Real Estate Refinance Co., established in late 2017 by the kingdom’s sovereign wealth fund, has started preparing for its first global bond sale, and is also looking at structured-finance options, chief executive officer Fabrice Susini said in an interview with Bloomberg TV. The company has also just raised SR4bn ($1.1bn) from Saudi investors in seven- and 10-year notes, its biggest issuance so far, he said. The refinancing company was set up to buy home loans from banks and other finance companies, freeing up lenders to book more mortgages. Saudi citizens have complained for years about the availability and affordability of housing, and boosting home ownership is one of Crown Prince Mohammed bin Salman’s key goals. The introduction of a mortgage law along with government incentives have now made mortgages one of the main drivers of lending growth for banks in the kingdom. Despite the rapid increase in mortgage financing in the kingdom “risks remain under control,” Susini said. “The rate of increase of mortgages has been very significant but it’s been from a very low base.” Tags finance homes Mortgages Ownership Saudi Real Estate Refinance Co 0 Comments You might also like Dubai sets up fund to oversee government investments Getting tax-ready: Navigating compliance in Saudi Arabia, GCC Mashreq to facilitate Dhs110bn in sustainable finance by 2030 Dubai Financial Market to launch pilot carbon credits programme at COP28