APICORP’sdebut Green Bonds secures strong demand from global investors
- MENA region’s first-ever green bonds issued by an energy-focused investment institutionnearly 3x oversubscribed
- APICORP will alignfuture investments with its recently launched Green Bond Framework and UN Sustainable Development Goals
- APICORP plans toissue an annual Green Bond Report on the environmental impact of the bonds
Dammam, Saudi Arabia,6October,2021: 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 debutgreen bonds.
The US-denominated five-year benchmark issuance, the firstgreen bond in the MENA regionissued by an energy-focusedinvestment institution, was nearly threetimes 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.
Adesignated Green Bond Committee (GBC) will oversee the evaluation processof the projects to ensure their compliancewith APICORP’s recently launched ESG and Green Bond Frameworks, alignment to best practices, andthat they support local and national energy sustainability strategies.In addition, APICORP plans to issue an Annual Green Bond Report onthe 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 bondsreflects 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 theirtrust in our ability to promoting the ESG agenda in the MENA region.”
APICORP recently announced that it will allocate almost US $1 billiontogreen energy projects over the next two years.
The Arab Petroleum Investments Corporation (APICORP) is an energy-focused multilateral development financial institution established in 1975 by the ten Arab oil exporting countries. APCIORP’s mission is to support the sustainable development of the region’s energy sector and related industries through a range of financing and direct equity solutions, as well as energy research and advisory services. APICORP applies best-practice ESG principles across all operations, with green and renewable energy projects comprising 13% of its nearly US $4 bn loan portfoliowhich encompasses leading public and private sector partners in25countries. APICORP is also the only financial institution in the MENA region rated ‘Aa2’ by Moody’s and ‘AA’ by Fitch.