APICORP’s $750m bond trades record low

Arab Petroleum Investments Corporation says its latest bond issuance recorded the lowest ever spread and yield at +69 basis points and 1.26 per cent respectively.

The corporation disclosed this in an official statement on Wednesday to announce the successful issuance of a benchmark $750m five-year bond to bolster its business operations, capital and liquidity positions.

“The latest and final transaction of APICORP’s $3bn Global Medium-Term Note programme launched in 2020, the issuance was more than 2.5 times oversubscribed, with around 57 per cent of the more than $2bn in orders coming from central banks, multilateral development banks, and other Sovereign, Supranational and Agency investors,” it stated.

It further explained that the final spread was +69 basis points with a 1.26 per cent yield, both of which were the lowest ever for an APICORP bond issuance of this type.

“The geographic distribution of the deal was also the most well-diversified in APICORP’s history, with 82 per cent of the 65 investors in the transaction coming from outside the MENA region,” according to the statement.

Commenting on the bond issuance, APICORP’s Chief Executive Officer, Dr. Ahmed Attiga, said, “We are immensely pleased with the success of our latest U.S. dollar bond issuance. The ability for APICORP to issue in benchmark size and at historical low pricing, especially amid these challenging times in the global markets, speaks volumes of the stature of APICORP in the global debt capital markets.

“In further bolstering our already strong capital and liquidity positions, we can continue to forge ahead with our development mandate in supporting projects that advance the sustainable development of the energy sector, both in the region and beyond.”

The company’s Chief Financial Officer, Dr. Sherif Ayoub, added, “This benchmark issuance represents another important milestone for APICORP, as it allows us, in line with our long-term funding strategy, to further broaden and diversify our funding sources and deepen the relationship with our investor base.

“The ever-expanding range and high calibre of investors – including regional and global central banks as well as official institutions – clearly reflects APICORP’s status as a leading multilateral development bank at the global level, and attests to the high-quality nature of its credit profile.”