Trade Finance      The Corporation is mainly active in the financing of exports of crude oil and refined products produced in the Arab world. It is also willing to finance exports of petrochemicals and gas produced in the region. Additionally, the Corporation can finance Arab imports of oil-related equipment, machinery and services. The trade finance facilities are usually of a short-term nature of up to one year. In certain cases, trade finance facilities can be extended to three years, depending on the client requirements and risk profile of the transaction. Most of the export facilities are structured in favor of international importers outside the Arab region. For example, APICORP has been engaged in extending trade finance facilities in favor of national oil companies in India, Philippines, Germany, Brazil and Mexico. The trade finance facilities provided by APICORP are arranged on a commercial basis, on open account or against letters of credit. Where necessary they can be structured on a revolving basis. More recently the Corporation has widened the activity to include the provision of facilities using Islamic trade finance structures, mainly the “Murabaha” structure. This structure involves the Modareb (the Agent Bank) buying the underlying commodity, on behalf of all Participants, and selling it on to the Purchaser (the Borrower) at a profit and on a deferred basis. APICORP itself does not open or confirm letters of credit. Where such facilities are required, the Corporation is able to arrange them working in cooperation with commercial banks. In such instances, the Corporation shares in the facilities through risk participation agreements.