The Arab Petroleum Investments Corporation (APICORP) has successfully launched a $500mn-worth 5-year sukuk (Islamic bond) off its $3bn Trust Certificate Programme.
The initial price talk was released at mid swaps +125bps, subsequently revised to mid swaps +110bps before being able to price 25bps inside the IPTs at mid swaps +100bps. APICORP had previously issued in the sukuk market in 2015 and twice in the Taiwanese ‘Formosa’ market.
APICORP undertook extensive investor meetings in Asia at the beginning of October and in Riyadh, the UAE and London prior to the opening of the book. The extensive marketing partially explains the successful outcome which included a book in excess of $3.45bn in size from 215 investors.
The final distribution of the bond was 41% MENA and 59% in Europe, Asia and off-shore US. The sukuk traded up in the secondary market.
“We are delighted with the heavy oversubscription of this sukuk transaction. It is clear with over 200 investors across various jurisdictions, we have firmly planted the APICORP flag in the capital markets allowing us to develop strong relationships with new fixed income investors,” Dr Ahmed Ali Attiga, chief executive officer, commented.
“The success of this transaction is testament to APICORP’s impressive 40 year track record, unique ownership structure and strong fundamentals, and reassuring Aa3 credit rating,” Attiga was quoted as saying in a press release received by arabianoilandgas.com.
Abrar Hussain, Head of DCM for the MENA at Credit Agricole CIB commented: “APICORP is the perfect credit for investors, offering a strong Aa3 credit rating, a solid ownership by regional governments, diversification in terms of access to assets in several countries as well as strong fundamentals all rolled into one. What also helped was the extensive set of investor meetings across a wide geography.”
