APICORP Announces US500m Covid-19 Palliative To Member Countries
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution has announced the launching of a US500 million countercyclical, Covid-19 palliative aimed at supporting its clients in member countries and the region in the energy sector mitigate the impact resulting from the pandemic as well as oil price fluctuations.
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established in 1975 under the terms of an agreement signed by the ten member states of the Organization of Arab Petroleum Exporting Countries. APICORP shareholders/members include Algeria, 5%; Libya, 15%; Egypt, 3%; Syria, 3%; Iraq, 10%; Kuwait, 17%; Bahrain, 3%; and Qatar, 10%.
The organisation said yesterday that the USD 500 million package will be deployed to support sustainable impact-driven projects by extending funding for projects and working capital within the areas of utilities, renewables, petrochemicals, amongst other energy sub-sectors. APICORP will also expand its trade finance support to its member countries within the broader objective of reducing the fiscal and current account pressures caused by current market conditions
“In these challenging times, and whilst our Member Countries are fighting the spread of COVID-19, and its spillover effects, APICORP is committed to fulfilling its development mandate. The energy sector is a capital-intensive sector where we are observing investment reductions and delays in implementation more than previous downturns. As a trusted financial partner, APICORP will play a countercyclical role to address the funding shortfalls that may occur to our partners in the region as they work to meet planned commitments in critical projects and operations,” said Dr Ahmed Ali Attiga, chief executive officer of APICORP.
He explained that support for the energy and related sectors, in member countries and beyond, helps to guarantee energy security and access to finance in times of crisis. “We will be working with other multilateral development banks and financial partners to mobilize funding and mitigate the impact on these countries.”
APICORP, rated Aa2 with stable outlook by Moody’s, recently announced a landmark increase in callable capital to USD8.5 billion, as well as a significant increase in authorized and subscribed capital. This increase further bolsters APICORP’s financial sustainability and resiliency. APICORP provides a full range of project finance solutions designed to help energy companies create value and growth.
Leveraging its extensive regional expertise, both Islamic and conventional, and strong relationships with financial institutions and governments, APICORP provides tailored solutions that answer the complex and challenging financing needs of large projects.
APICORP brings to each project its robust technical and advisory capabilities; leadership in syndicating regional oil and gas financings; ability to meet the demanding needs of businesses; and significant underwriting capacity.
Although focused on the Arab world, APICORP extends its support to non-Arab projects that bring direct benefits to Arab economies. In 2011, APICORP established a partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to co-finance developing-country energy projects featuring Arab investments.