APICORP’s Debut Green Bonds Secures Strong Demand From Global Investors
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution focused on the energy sector, announced that it has successfully raised US $750 million from its debut green bonds.
The US-denominated five-year benchmark issuance, the first green bond in the MENA region issued by an energy-focused investment institution, was nearly three times oversubscribed, garnering USD $2.2 billion in orders from more than 80 institutional and sovereign investors.
All projects funded by APICORP using these green bonds will be aligned with the United Nations Sustainable Development Goals (SDGs), with a focus on renewable energy, green buildings, pollution prevention and control, and low-carbon technologies and solutions.
A designated Green Bond Committee (GBC) will oversee the evaluation process of the projects to ensure their compliance with APICORP’s recently launched ESG and Green Bond Frameworks, alignment to best practices, and that they support local and national energy sustainability strategies. In addition, APICORP plans to issue an Annual Green Bond Report on the environmental impact of the bonds to ensure stakeholder visibility.
Commenting on the success of the bonds, Dr. Ahmed Ali Attiga, CEO of APICORP, said, “The shift to more sustainable energy solutions is no longer an option, it is a must, and we at APOCORP are here to accelerate this shift within the region. Through our debut green bonds, APICORP opens new investment avenues to build a more sustainable future for the Arab world and give millions of people access to safer, cleaner, and more affordable energy sources.”
In terms of geographic distribution, investors from outside the Arab region accounted for 93% of the total subscribers of the issuance, with 45% based in the UK and Europe. Notably, 63% of the subscribers are strictly ESG-focused investors.
Dr. Sherif El Sayed Ayoub, Chief Financial Officer of APICORP, said, “The success of our green bonds reflects the strong demand in sustainable investments. The interest from leading global institutional and sovereign investors in this issuance, particularly those focused on sustainable and responsible investing, also underscores the strong reputation APICORP has built and their trust in our ability to promoting the ESG agenda in the MENA region.”
APICORP recently announced that it will allocate almost US $1 billion to green energy projects over the next two years.
Arab Petroleum Investments Corporation APICORP
The Arab world’s energy wealth is undoubtedly one of its greatest economic strengths. These resources represent enormous value but they cannot create economic growth without strong institutions that actively work to advance innovation, efficiency, and value creation.
APICORP was created by the Organisation of Arab Petroleum Exporting Countries (OAPEC) in 1975 as a commercially-focused financial institution that can help provide nuanced and efficient financing options to the Arab energy industry. Over the last four decades, APICORP has worked to raise capital access and enhance the financial stability and performance of the Arab energy industry through an array of strategic equity investments, project loans, trade finance, advisory and research.