Arab Petroleum Investments Corporation (APICORP) issues a benchmark USD750 million 5-year bond
The latest issuance, part of APICORP’s USD3 billion Global Medium-Term Note (GMTN) program, will bolster the corporation’s business operations
DAMMAM, Kingdom of Saudi Arabia, June 29, 2020/ -- Financing will bolster APICORP’s (www.APICORP.org) business operations, including its countercyclical role in mitigating
the impact of the COVID-19 pandemic and oil price fluctuations in the
MENA region; Issuance attracted more than USD 1.1 billion in orders for
the debt sale from over 40 investors of various types; At 1.46% per
annum, the fixed cost of funding is the lowest in the history of
APICORP; 110bps spread is the lowest in the region compared to other
sovereign, semi-sovereign issuances and MDB peers’ USD issuances that
came to market after COVID-19.
The Arab Petroleum Investments Corporation (APICORP), a multilateral
development financial institution, today announced the issuance of a
benchmark USD750 million dollar-denominated five-year bond in the RegS
markets.
The latest issuance, part of APICORP’s USD3 billion Global Medium-Term
Note (GMTN) program, will bolster the corporation’s business operations. This also includes undertaking a countercyclical role in 2020 aimed at
supporting the MENA energy sector in mitigating the impact resulting
from the COVID-19 pandemic as well as oil price fluctuations.
The issuance attracted robust and diverse investor demand, with more
than USD1.1 billion in orders for the debt sale from over 40 investors
of various types from within and outside the MENA region.
The five-year note’s fixed cost of funding (1.46%) is the lowest in the
history of APICORP. Moreover, the spread of 110bps is the lowest in the
region compared to the sovereign, semi-sovereign and MDB peers’ US
Dollar issuances that came to the market since the COVID-19 outbreak.
Notably, APICORP is currently the only financial institution in the MENA region rated ‘AA’ by Fitch and ‘Aa2’ by Moody’s, both with stable
outlook.
Dr. Ahmed Ali Attiga, APICORP’s Chief Executive Officer, commented: “Despite challenging market conditions, the successful issuance of this benchmark US dollar bond, with this level of competitive pricing,
reflects the confidence that global investors have in APICORP. We are
appreciative that more than 50% of the investors for this issuance are
central banks and official institutions, both from within and outside
the region. We are also pleased with the number and profile of our
investors spanning MENA, Asia, Europe and the Americas. As a trusted
financial partner for supporting the sustainable development of the MENA region’s energy sector, this milestone is another step towards
fulfilling our mandate and a testament to our position as a leading
MDB.”
Dr. Sherif Elsayed Ayoub, Chief Financial Officer of APICORP, said: “The remarkable achievements of this benchmark issuance, including the
repricing of APICORP’s curve, attests to the effectiveness of our
approach which is anchored by strong fundamentals with clear pricing and quantum objectives. Indeed, this issuance reinforces our strategic
objective of meeting our operational ambitions by way of cost-effective
financing that can add value to our partners and solidify APICORP’s
profile as a high-grade issuer that is firmly within the sovereign,
supranational and agency (SSA) space.”
The Global Coordinators, Joint Lead Managers and Bookrunners included
Citibank, Emirates NBD, Goldman Sachs International and Standard
Chartered, whereas the billing and delivery agent was Standard
Chartered. Furthermore, Allen & Overy served as the issuer’s
counsel, while Clifford Chance served as the banks’ counsel. KPMG
undertook the role of the auditor on the issuance.
Read more at: https://bit.ly/2CR5jiu
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About APICORP:
The Arab Petroleum Investments Corporation (APICORP) (www.APICORP.org) is a multilateral development financial institution established in 1975 by an international treaty between the ten Arab oil exporting
countries. It aims to support and foster the development of the Arab
world’s energy sector and petroleum industries. APICORP makes equity
investments and provides project finance, trade finance, advisory and
research. APICORP is rated ‘Aa2’ with stable outlook by Moody’s and ‘AA’ with a stable outlook by Fitch. APICORP’s headquarters is in Dammam,
Kingdom of Saudi Arabia. More information can be found at: www.APICORP.org
Link: Arab Petroleum Investments Corporation (APICORP)
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