Arab Petroleum Investments Corporation (APICORP)
The Multilateral Development Bank of the Organisation of Arab Petroleum Exporting Countries (OAPEC)
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established to foster the development of the Arab world’s oil and gas industries. The organization was created under the terms of an agreement signed by the ten Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC) in September 1974. APICORP’s vision is to transform the Arab energy industry into a powerful force for the region’s economic progress. Driven by this vision, APICORP seeks to make equity investments and provide project loans, trade finance, advisory and research to the industry.
APICORP is one of the five organizations established by OAPEC to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry. It supports sectors across the industry spectrum including projects that are derived from or complementary to the industry. Since its founding, APICORP has made significant contributions to the evolution of the region’s energy industry. It has made equity investments in 22 oil and gas joint venture projects worth over $13 billion and participated in direct and syndicated energy finance transactions worth over US$126 billion. APICORP‘s aggregate commitments in these transactions, including both in equity and debt, are valued in excess of US$11 billion. Apart from this, it has provided advisory and treasury services related to financing and project development; and published highly regarded macro-economic research. These areas continue to define APICORP in today’s marketplace.
APICORP is independent in its functioning and carries out its operations on a commercial basis. The Corporation’s headquarters are located in Al-Khobar/Dammam, in the Eastern Province of Saudi Arabia. APICORP also operates a Banking Branch in Manama, Bahrain.
APICORP is an inter-Arab joint stock company hosted by the Kingdom of Saudi Arabia. However, it enjoys all the rights and privileges that national companies enjoy in each OAPEC Member State.
Preferred Creditor Status
As a multilateral development bank, APICORP enjoys a de facto preferred creditor status. The Establishing Agreement preserves and protects APICORP’S assets, rights and privileges of nationality as well as the international interests of its Members. The Agreement also grants preferential access to foreign exchange in the event of a foreign exchange crisis in any OAPEC country. APICORP loans are exempt from country risk provisioning when applicable and has never been included in general country debt rescheduling.
23rd September 2016: Moody’s Investors Service reaffirmed APICORP’s Long-term Issuer rating of Aa3 and short-term Issuer Rating of P-1 with stable outlook.
23rd September 2015: Moody’s Investors Service reaffirmed APICORP’s Long-term Issuer rating of Aa3 and short-term Issuer Rating of P-1 with stable outlook.
20th September 2014: Moody’s Investors Service reaffirmed APICORP’s Long-term Issuer rating of Aa3 and short-term Issuer Rating of P-1 with stable outlook.
6th September 2013: Moody’s Investors Service reaffirmed foreign currency issuer rating of Aa3 for long-term debt and maintains Prime-1 for short-term debt with stable outlook.
25th September 2012: Moody’s Investors Service upgraded foreign currency issuer rating to Aa3 from A1 for long-term debt and maintains Prime-1 for short-term debt with stable outlook.
19th December 2011: Moody’s Investors Service maintains foreign currency issuer rating of A1 for long-term debt and Prime-1 for short-term debt with stable outlook.
08th June 2010: Moody’s Investors Service issued a first-time issuer rating of A1 for long-term debt and Prime-1 for short-term debt with stable outlook.
APICORP’s financial stability was further endorsed by Moody’s on 01 October 2010 when it assigned a rating of A1 to its Saudi Riyal-denominated senior unsecured bonds.
Capital Adequacy and NPL Ratios
APICORP Risk Weighted Capital Adequacy ratio stood at 27.2% as at the end of 2012, which is higher than the most ‘AA’ rated banks, it is intended to maintain such high competitive ratio. APICORP’s extremely low leverage ratio of 2.878 and extremely low Non-Performing Loans (Net Non-Performing Loans are “NIL” and Gross NPLs are 2.6%), illustrate strong asset quality and solid financial stability in today’s ever challenging global financial environments.”