Increase the Exposure Limit for the Group of Connected Counterparties – Aramco Group

In the name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority
Headquarters

Banking Policy Department

Reference No.: 42003694
Date: 1442/01/22
Attachments: None

Circular

Dear Sirs,
Peace, mercy and blessings of Allah be upon you,

Subject: Increase the total exposure limit for a Group of Connected Counterparties (Group of Connected Counterparties) – Aramco Group.

With reference to the Large Exposures Rules issued under Circular No. 1651/67 dated 09/01/1441 AH.

As a result of Saudi Aramco’s ownership of over 50% of the shares in Saudi Basic Industries Corporation (SABIC), which leads to the classification of both companies as a Group of Connected Counterparties under the aforementioned Large Exposures Rules, we inform you that the total exposure limit for the Group of Connected Counterparties – Aramco Group has been increased from 25% to 35% of the bank’s eligible capital, provided that the exposure for each company individually does not exceed the limits stipulated in the Rules, with emphasis on the importance of adhering to sound policies and procedures for managing concentration risk.

Yours sincerely,

[Signature]
Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom

M. Al-Talhi [Signature]

P.O. Box 2992 Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Phone: 4633000, Fax: 4662414