JPMorgan Chase & Co. has joined a group of Gulf lenders to arrange approximately US$7 billion in debt financing for projects being developed by a Qatari consortium in Syria, marking one of the largest foreign investment commitments to the country's reconstruction since the ousting of former President Bashar al-Assad.

According to people familiar with the matter cited by Bloomberg, the US banking giant is working alongside Qatar National Bank (QNB) and Abu Dhabi Commercial Bank (ADCB) to structure the financing for projects being undertaken by a consortium led by Power International Holding (PIH), one of Qatar's largest diversified business groups.

Five-Year Facility Backed by QNB

Sources said the five-year credit facility will be fully guaranteed by Qatar National Bank, whose largest shareholder is the Qatar Investment Authority (QIA), the country's sovereign wealth fund with assets of around US$580 billion.

The financing will support the reconstruction of Syria's electricity infrastructure as well as the development of an airport, contributing to broader efforts to revive an economy devastated by more than a decade of conflict.

According to the sources, the loan will be fully drawn at the outset of the agreement. Pricing is expected to be around 370 basis points above the Secured Overnight Financing Rate (SOFR), comprising a 250-basis-point lending margin and approximately 120 basis points in additional fees.

JPMorgan and QNB declined to comment on the transaction, while ADCB and Power International Holding did not respond to requests for comment.

Syria Reopens to International Financing

The transaction comes as Syria, home to approximately 26 million people, continues its gradual reintegration into international financial markets following years of economic isolation.

President Ahmad al-Sharaa has sought to attract foreign investment to support the country's reconstruction, aided by the easing of many US economic sanctions imposed on Damascus.

Although some restrictions on Syria's banking sector remain in place—continuing to complicate the financing of reconstruction projects—the United States, European countries and Gulf states have shown increasing willingness to support the country's economic recovery.

Saudi Arabia has already announced investment commitments in Syria, while Kuwait's telecommunications operator Zain is preparing to invest more than US$1.5 billion after securing the rights to operate a mobile telecommunications network in the country.

Sources: Bloomberg; Al Arabiya