The Treasury & Capital Markets Department’s main role is to proactively manage APICORP’s assets & liabilities and liquidity profiles. The Department is tasked with ensuring the sustained funding of APICORP’s balance sheet in any economic environment and across economic cycles.
The Bank’s capital and treasury market operations cover an extensive domestic and international counterparty base. While the Department’s role is chiefly internally focused, the Bank also extends treasury and capital market advisory services to its financing clients and companies in which it has direct equity stakes.
The Department adopts conservative strategies to ensure a diversified funding base. Activities cover:
Treasury: Treasury is active in both conventional and Islamic money and Foreign Exchange markets, with a diverse range of counterparties, including regional and global financial institutions, governments, corporations, pension funds and agencies.
Capital Markets: The Department manages a non-hydrocarbon investment portfolio to ensure a diversified income stream. The portfolio combines a mixture of high quality fixed income securities including US treasuries.
Liquidity Management: APICORP prudently and efficiently manages its liquidity levels by raising finance from money markets, capital markets as well as through medium term syndicated financings.
Market Risk Management: Conservative risk management policies ensure the Bank maintains a low interest rate and foreign exchange risk profile by utilizing a wide range of financial tools. We assist APICORP’s clients either directly or in conjunction with other departments.
Case Study – APICORP’s Landmark Five-Year SAR 2 Billion Debut Bond
APICORP placed its debut Saudi Arabian Riyal (SAR) 2 billion bond with institutional investors in October 2010 through an issuance coordinated by Credit Agricole Corporate and Investment Bank and the joint lead managers and book runners, Calyon Saudi Fransi Limited; GIB Financial Services L.L.C.; HSBC Saudi Arabia Limited; and Samba Capital & Investment Management Company Limited.
The bond was oversubscribed three times resulting in an aggregate book size of SAR 6 billion (USD 1.6 billion). Rated A1 by Moody’s, the bond was the first such foray by a Multilateral Development Bank in the Kingdom.