SMBC Asks Banks to Confirm Saudi Energy Loan Backing Amid War

Sumitomo Mitsui Banking Corp. has reached out to Asian banks backing an around $1.5 billion Saudi loan deal to reconfirm their commitments, an unusual step highlighting the risks the conflict in Iran poses for lending in the region.

SMBC, one of Japan’s largest lenders, started marketing the syndicated facility for Saudi Energy Co. just before the war began, focusing on Asian banks, according to people familiar with the matter. With commitments due by the end of March, the deal underscores the mounting pressure SMBC faces as sole underwriter to sell the loan, even though such deadlines are typically flexible.