The Arab Petroleum Investments Corporation (APICORP), a Saudi-headquartered multilateral development bank will focus on sustainable energy projects and activities in the region going forward.

APICORP announced H1 net profit of $54.8 million, down 22 percent year-on-year (y-o-y) due to COVID-19 pandemic, oil price fluctuations and economic downturn. Its H1 gross operating income was down by 20 percent y-o-y.

Dr. Ahmed Ali Attiga, Chief Executive Officer, APICORP, said: “We are looking forward to the coming period for a gradual recovery in our operating environment and the new opportunities it will bring. As the trusted financial partner to the MENA region’s energy industry, we will continue to support our Member Countries and partners to alleviate the impact of COVID-19, with a focus on sustainable impact-driven energy projects and activities in the region.”

APICORP launched a $500 million countercyclical support package in April 2020 aimed at easing the financial pressures of the COVID-19 pandemic and oil price fluctuations on the region’s energy sector. The package is being deployed to support sustainable impact-driven projects by extending funding for projects and working capital within various energy sub-sectors, as well as expanding trade finance support to its member countries to reduce the fiscal and current account pressures caused by current market conditions.

Besides issuing a benchmark $750 million dollar-denominated bond in June, APICORP acquired a 20 percent equity stake in Jordan Wind Project Company, owner and operator of the Tafila Wind Farm, the first utility-scale wind farm in MENA.

The acquisition, the Corporation’s first equity investment both in Jordan and in a wind farm venture, will contribute to wider deployment of the region’s vast renewable energy sources to enable wider access to modern cost-effective electricity to millions of people, according to a statement from APICORP. 

(Writing by Seban Scaria; editing by Daniel Luiz)

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© ZAWYA 2020