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JPMorgan Eyes $100 Million Payday on Trade Linked to Aramco Deal

  • Bank entered into swap trade with pipeline stake buyer EIG
  • JPMorgan set to profit after interest rates moved in its favor
Aramco pipelines pipes
Photographer: Simon Dawson/Bloomberg

JPMorgan & Chase Co. is set to earn more than $100 million on a recent trade tied to the sale of a stake in Saudi Aramco’s oil pipelines, a windfall that stands out even in the sprawling interest-rate swap market, people familiar with the matter said.

The bank is poised to book gains on a hedging transaction with U.S. investment firm EIG Global Energy Partners LLC, which agreed last month to invest $12.4 billion in the pipelines, the people said. JPMorgan advised Aramco on the deal and was one of two banks that helped it arrange a loan of more than $10 billion offered to the buyers, the people said.