Aramco’s IPO holds many opportunities for banks; no current plans for M&As: Alinma CEO

Abdulmohsen Al-Fares, Alinma Bank’s CEO, said that Saudi Aramco’s anticipated initial public offering (IPO) is a “huge transaction” that will provide many opportunities for Saudi banks and will promote the capital market.

Banks can benefit from the IPO, whether in terms of lending individuals to participate in the IPO or by acting as the receiving banks, he told Bloomberg in an interview.

When asked about possible mergers and acquisitions (M&As), Al-Fares said that Alinma Bank is not looking at M&As. However, any value-adding opportunities would be considered.

Megaprojects support Alinma Bank’s corporate financing portfolio, while retail financing is driven by mortgages, he said.

The private sector started to invest in some projects, which also helps the bank, he added.

Currently, Alinma Bank is not considering Sukuk issuances, yet it may reconsider in the future if liquidity is needed, Al-Fares said, pointing out that government issuances represent a sustainable income for banks.