Aramco is considering selling a stake in the natural gas pipeline network
Saudi Aramco is considering selling a stake in the natural gas pipeline network.. JPMorgan is scheduled to receive more than $100 million in profits, in a deal to sell a stake in Saudi Aramco's oil pipelines, the bulk of which is related to hedging contracts. to swap interest rates for the buying parties.
Sources revealed that the bank is preparing to reap gains in the hedging deal with US investment firm EIG Global Energy Partners LLC, which agreed last month to invest $12.4 billion in pipelines.
The sources said JPMorgan advised Aramco on the deal, and was one of two banks that helped it arrange a loan of more than $10 billion for buyers. Given the amount of funding, EIG has separately entered into a so-called interest swap deal with JPMorgan, to hedge against interest rate fluctuations.
EIG is leading a consortium to buy a 49% stake in the lease rights through Aramco's oil pipelines, according to a statement issued in April. Mubadala Investment Company, Abu Dhabi's sovereign wealth fund, said it was also in talks to join the group of investors. Advisers are preparing for more deals with Aramco, as the Saudi oil giant considers selling a stake in the natural gas pipeline network.