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| 07 November, 2017

Apicorp issues $500mln five-year sukuk

Image for illustrative purpose.A computer screen is reflected in the glass window of a booth where a broker monitors the market at the Karachi Stock Exchange November 7, 2012. REUTERS/Akhtar Soomro

Image for illustrative purpose.A computer screen is reflected in the glass window of a booth where a broker monitors the market at the Karachi Stock Exchange November 7, 2012. REUTERS/Akhtar Soomro

Reuters/Akhtar Soomro

Apicorp had previously issued in the sukuk market in 2015

Muscat: The Arab Petroleum Investments Corporation (APICORP) has launched a $500 million 5-year sukuk off its $3 billion Trust Certificate Programme.

The initial price talk was released at mid swaps 125bps and subsequently revised to mid swaps 110 basis points (bps) before being able to price at 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 held 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 $3.45 billion from 215 investors. The final distribution was 41 per cent MENA and 59 per cent Europe, Asia and off-shore United States. 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. The success of this transaction is a testament to Apicorp’s impressive 40-year track record, unique ownership structure, strong fundamentals and reassuring Aa3 credit rating,” said Dr. Ahmed Ali Attiga, Chief Executive Officer at Apicorp.

“Apicorp is the perfect credit for investors, offering a strong Aa3 credit rating, 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,” said Abrar Hussain, Head of DCM for the Mena at Credit Agricole CIB.

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