The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, received a first-time issuer rating of A1 by Moody’s Investors Service for long-term debt and Prime-1 for short-term debt.
Owned by 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), APICORP’s total assets at the end of 2009 were $4.1 billion. The government of Egypt owns a 3 percent stake, according to a statement.
Chief Executive and General Manager Ahmad Bin Hamad Al Nuaimi, said, “The rating is an important milestone for APICORP and I expect it will assist in the company’s 2010-2014 five years business plan.”
APICORP aims to support the development of the oil, gas, petrochemical and energy industries in the Arab world through project loans, trade finance and direct equity investments.
“Our risk-weighted capital adequacy ratio was approximately 25 percent at the end of 2009. This is stronger than most A-rated commercial banks and is expected to rise to around 30 percent by 2014,” said Al Nuaimi.
In 2009, the corporation saw 112 percent increase in profits, compared to 2008, with total assets rising 15 percent over the previous year to $4.1 billion. Total shareholders’ equity was up 23 percent to reach $1.1 billion, the statement said.
Al Nuaimi added, “Hydrocarbon and energy assets are expected to outperform others as the global economy recovers.”
The company’s research found that of an estimated $470 billion of investments required in the Arab world, the oil supply chain accounts for 47 percent, gas supply chain for 36 percent and the oil-or-gas-fuelled power and power/water generation sector for the remaining 17 percent.
APICORP is headquartered in Al-Khobar/Dammam, Saudi Arabia and operates a banking branch in Manama, Bahrain.
