The Arab Petroleum Investments Corporation (APICORP) has successfully secured new financing through a Shariah compliant syndication totalling $950 million.
In a statement, the group said appetite among lenders to provide financing was significant given APIRCORP’s strong balance sheet, track record, unique shareholder structure and overall credit worthiness.
The facility will be used to grow APICORP’s portfolio of equity investments in regional energy projects.
The deal featured two tranches: the first, $800mn and maturing in five years, was arranged by SABB, National Commercial Bank, Samba Financial Group, Riyad Bank and Banque Saudi Fransi.
The second tranche was for $150mn, matures in three years, and was arranged by First Gulf Bank, HSBC Middle East and National Bank of Abu Dhabi.
Commenting, Dr Raed Al Rayes, Deputy CEO of APICORP, said: “As an Aa3 rated business, lender appetite for this deal was substantial, which is a clear sign of the confidence in APICORP’s overall credit worthiness.
“This financing leaves us in firm control of our liquidity and equipped to continue delivering against our mandate to foster the development of the Arab world’s energy sector through secure equity and debt finance.”
APICORP is an investment company established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC).
