Three of Japan’s largest banks are reportedly preparing to boost their lending to Saudi Aramco this week as the state-owned oil giant continues mulling an initial public offering.

Sources told Bloomberg that Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Financial Group Inc. are expected to sign a memorandum of understanding with Saudi Aramco to expand lending to the state-owned firm.

Mizuho Financial Group Inc. is also expected to sign on to the deal, sources told Bloomberg.

Sources told Bloomberg that the firms are interested in participating in Saudi Aramco’s potential IPO.

Another source told Bloomberg that Japan’s Ministry of Economy, Trade and Industry has asked Saudi Aramco to list its shares on the Tokyo Stock Exchange.

Neither the banks nor Saudi Aramco have commented on the matter.

Saudi Aramco confirmed in January that it has begun studying “various options to allow broad public participation in its equity” in either the company as a whole or a bundle of its downstream subsidiaries.

No further details about the potential offering have been disclosed.

If Saudi Aramco moves forward with its IPO the offering is expected to generate upwards of $1 billion in fees for some of the world’s largest investment banks.

Saudi officials have indicated that any offering would see the kingdom keep a majority stake in Saudi Aramco.

Saudi Arabian Deputy Crown Prince Mohammed bin Salman pegged Saudi Aramco’s value at more than $2 trillion earlier this year.

“If 1 percent of Aramco is offered to the market, just 1 percent, it will be the biggest IPO on earth,” Prince Mohammed said in an interview seen by Reuters earlier this year.


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