The company confirmed that the issuance was conducted under regulatory frameworks and stringent controls, reflecting the maturity and confidence of investors in the financial sector, in a move aimed at expanding financial investment tools in the Kingdom. The CEO of the company, Majid Al-Abdul Jabbar, described the issuance as a qualitative leap in developing the secondary market for mortgage financing, praising the cooperation with the Saudi Central Bank, the Capital Market Authority, the Financial Sector Development Program, the Housing Program, and the Public Investment Fund.
The company explained that securitization will enable investors to enter assets with high credit quality and medium-term maturities, and it will provide financial institutions with greater flexibility in managing capital and risks. This process is considered the first step towards innovative financial instruments within the Saudi market, according to the Saudi Press Agency (SPA).
In this process, assets are pooled into a portfolio or fund, and then securities backed by these assets are issued. These securities are often known as “Mortgage-Backed Securities” in the case of mortgages.
