The oversubscribed USD 300mn transaction is the first successful “Formosa” bond out of Saudi Arabia
The Arab Petroleum Investments Corporation (APICORP) has successfully launched the first “Formosa” bond out of the Kingdom of Saudi Arabia, targeting the Taiwanese investor base. In order to appeal to the local investor base, the Formosa bond, also known as a Taiwan foreign-denominated international bond, is listed on the International Board of the Taipei Stock Exchange. Credit Agricole CIB acted as the lead manager on the trade.
Mr. Hesham Farid, Head of Treasury & Capital Markets, commented: “We are delighted with the high level of interest from top quality investors in our first “Formosa” bond. The oversubscribed issue has allowed us to develop strong relationships with a new set of investors in Taipei. This is testament to APICORP’s impressive 40 year track record, unique ownership structure and strong fundamentals, and reassuring Aa3 credit rating.
Having previously accessed the sukuk market in both Saudi Riyal and US Dollars, it was important for APICORP to continue to diversify our investor base, sources of funding and educate investors on the strength of the APICORP credit.”
Abrar Hussain, Head of DCM for the MENA at Credit Agricole CIB commented: “APICORP ticks all the boxes required by this specific investor base. It offers a strong Aa3 credit rating, a solid ownership by regional governments, diversification in terms of access to assets in several countries as well as strong fundamentals all rolled into one. This is the perfect name for the Taiwanese investor base.”
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank 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 10 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. The company is rated Aa3 stable by Moody’s