THE Arab Petroleum Investments Corporation (Apicorp), an investment company established in 1975 by the 10-member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), has successfully secured new financing through a Shariah-compliant syndication totaling $950 million. Appetite among lenders to provide financing was significant given APIRCORP's strong balance sheet, track record, unique shareholder structure and overall credit worthiness. The facility will be used to grow APICORP's portfolio of equity investments in regional energy projects. The deal featured two tranches: the first, worth SR3 billion ($800 million) and maturing in five years, was arranged by SABB, National Commercial Bank, Samba Financial Group, Riyad Bank and Banque Saudi Fransi. The second tranche was for $150 million, matures in three years, and was arranged by First Gulf Bank, HSBC Middle East and National Bank of Abu Dhabi. The transactions officially completed in early 2015. The successful transaction has recently been recognized by Islamic Finance News (IFN), receiving the publication's prestigious Syndicated Deal of The Year Award. The award was based on peer nomination and expert independent industry analysis. Dr Raed Al Rayes, Deputy CEO of Apicorp, said: “As an Aa3 rated business, lender appetite for this deal was substantial, which is a clear sign of the confidence in Apicorp's overall credit worthiness. This financing leaves us in firm control of our liquidity and equipped to continue delivering against our mandate to foster the development of the Arab world's energy sector through secure equity and debt finance.” Apicorp has established an impressive 40-year track record providing equity investments, loans and expert research to the Arab energy industry. Earlier this year, the organization published its Arab Energy Investment Outlook report, which indicated that despite continuing regional turmoil, as well as declining oil prices, energy capital investments over the next five years will total $658 billion for the Arab world, and as much as $755 billion when considering the wider MENA region. — SG
