Dammam, Kingdom of Saudi Arabia: The Arab Petroleum Investments Corporation (APICORP) today announced the establishment of a $3 billion Sukuk programme.
Establishing the Sukuk programme marks a strategic step for APICORP, rated Aa3 by Moody's, in becoming a regular issuer of sukuk in global markets, and will position the company's credit alongside its multilateral development banks peers.
APICORP's Chairman, HE. Dr. Aabed A. Al-Saadoun said, "We are delighted to have established this Sukuk Programme which, in line with the recently approved corporate strategy, will allow APICORP to diversify its funding sources, reduce the overall cost of financing, extend the Company's debt maturity profile, and enhance our access to a diverse set of global investors."
HE. Dr. Al-Saadoun further added, "The lower financing costs that APICORP's are expecting to secure after this new Programme will enhance APICORP's ability to foster its development mandate of the hydrocarbon and energy related sectors in Arab countries by, first: enabling APICORP to extend attractive financing terms to its clients and partners alike, second: enhance APICORP's ability to participate in financing some strategic energy related projects which may not attract the commercial banks from either a return or tenor perspective."
APICORP could issue its first Sukuk later this year, subject to prevailing market conditions, as part of its new $3 billion programme. It is expected that this Programme will supports the efforts to deepen the international Sukuk markets by offering Shari'ah compliant investors' access to high-quality Sovereigns, Supra nationals & Agencies (SSA) assets.
Standard Chartered Bank is acting as sole arranger for APICORP's programme. The programme will be listed on the Irish Stock Exchange and rated by Moody's Investor Services.
APICORP is a multilateral development bank created and owned by the governments of the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). APICORP's mission is to meaningfully contribute to the ongoing development of the Arab oil and gas sector, and the region's energy sector more generally, through the provision of financial solutions, such as equity investments and loans, and research. The company seeks to make appropriate financial returns on the services it provides to the energy industry.
For further information:
Iain Munro, Bell Pottinger
Mobile: +971 555597389
Email: imunro@bellpottinger.com
About APICORP
The Arab Petroleum Investments Corporation (APICORP) is an investment company established to foster the development of the Arab world's oil and gas industries. The organization was created under the terms of an agreement signed by the ten Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC) in September 1974. APICORP's vision is to transform the Arab energy industry into a powerful force for the region's economic progress. Driven by this vision, APICORP seeks to make equity investments and provide project loans, trade finance, advisory and research to the energy industry.
APICORP is one of the five organizations established by OAPEC to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry. Since its founding, APICORP has made significant contributions to the evolution of the region's energy industry. It has made equity investments in 22 oil and gas joint venture projects worth over $13 billion and participated in direct and syndicated energy finance transactions worth over US$126 billion. APICORP's aggregate commitments in these transactions, including both in equity and debt, are valued in excess of US$11 billion. Apart from this, it has provided advisory and treasury services related to financing and project development; and published highly regarded macro-economic research. These areas continue to define APICORP in today's marketplace.
APICORP is independent in its functioning and carries out its operations on a commercial basis. The Corporation's headquarters are located in Dammam, in the Eastern Province of Saudi Arabia. APICORP also operates a Banking Branch in Manama, Bahrain.
© Press Release 2015
