The Arab Petroleum Investments Corporation (APICORP) has launched a US$500mn countercyclical support package aimed at supporting its clients in the energy sector to mitigate the COVID-19 impact
The US$500mn package will be deployed to support sustainable impact-driven projects by extending funding for projects and working capital within the areas of utilities, renewables, petrochemicals, amongst other energy sub-sectors. APICORP will expand its trade finance support to its member countries within the broader objective of reducing the fiscal and current account pressures caused by current market conditions.
Dr Ahmed Ali Attiga, CEO of APICORP, said, “The energy sector is a capital-intensive sector where we are observing investment reductions and delays in implementation more than previous downturns. As a trusted financial partner, APICORP will play a countercyclical role to address the funding shortfalls that may occur to our partners in the region as they work to meet planned commitments in critical projects and operations.”
He added, “Support for the energy and related sectors, in our member countries and beyond, helps to guarantee energy security and access to finance in these times of crisis. We will be working with other multilateral development banks and financial partners to mobilise funding and mitigate the impact on these countries.”
APICORP, rated Aa2 with stable outlook by Moody’s, has announced a landmark increase in callable capital to USD8.5 billion, as well as a significant increase in authorized and subscribed capital. This increase further bolsters APICORP’s financial sustainability and resiliency.
