Saudis Are Said to Consider Increase in Lending for Aramco IPO - Bloomberg

Saudis Are Said to Consider Increase in Lending for Aramco IPO - Bloomberg:

Saudi Arabia is considering increasing how much the kingdom’s banks can lend to local investors who want to buy shares in Aramco’s initial public offering, people with knowledge of the matter said.

The Saudi Arabian Monetary Authority met banks this week to discuss how much they can lend to domestic stock buyers who want to invest in the oil giant’s IPO, the people said, asking not to be identified because the information is private. Some lenders are seeking permission to offer greater leverage than what the central bank normally allows, they said.

The regulator wants to ensure that they are able to maintain enough liquidity in the local financial system, while still ensuring enough loans are available to support investors in the IPO, the people said. The final amount lenders are willing to provide will depend on the valuation Aramco seeks, with banks likely to be more conservative at higher valuations, they said.