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The Arab Petroleum Investments Corporation (APICORP), said Wednesday its benchmark $750 million five-year bond was more than 2.5 times oversubscribed with the final spread at +69 basis points with a 1.26 percent yield.
Both the spread and the yield are the lowest ever for an APICORP bond issuance of this type, it said in a statement.
The bond proceeds will be used to bolster the Saudi-based multilateral development financial institution’s business operations and capital and liquidity positions.
The latest and final transaction of APICORP’s $3 billion Global Medium-Term Note (GMTN) program launched in 2020, had around 57 percent of the more than $2 billion in orders coming from central banks, multilateral development banks (MDBs), and other sovereign, supranational and agency (SSA) investors.
Of the 65 investors in the transaction, 82 percent were from outside the MENA region, it said.
The company had a price guidance of around 70 bps over mid-swaps, Reuters reported last week.
APICORP operates on a commercial basis by investing and providing financing solutions to the Arab energy industry.
The deal was arranged by Citibank, BofA Securities, Nomura, China Construction Bank (Asia), Maybank, Emirates NBD Capital, and Standard Chartered Bank.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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