The US dollar transaction was issued to provide the company with maximum flexibility in accessing capital markets and further strengthen its financial position.
Saudi-based Arab Petroleum Investments Corporation (APICORP) has announced the pricing of its $750 million five-year bond issued under the multilateral development bank’s newly established $3 billion Global Medium Term Note (GMTN) programme.
The oversubscribed orderbook, which exceeded $3.5 billion marked a significant step for APICORP in implementing a diversified funding strategy that will enable the firm to fulfil its developmental mandate in support of the growth and transformation of the energy sector in the Arab world.
Dr Ahmed Ali Attiga, APICORP’s CEO, said, “Now, with this latest transaction, we have successfully reinforced our strong relationship with the global investor base and in particular the important and deep US investment community.”
The deal is the third benchmark issue for APICORP following a highly successful Sukuk in October 2017, with over 80 per cent of the deal placed with international accounts and 36 per cent of the bonds allocated to first-time US investors, the deal went a long way towards achieving the company’s diversification objectives.
The joint lead managers and bookrunners included Credit Agricole , HSBC as well as JP Morgan and Standard Chartered, co-managers included Bank ABC, First Abu Dhabi Bank and Union National Bank.