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Arab Petroleum Investments Corp (APICORP) plans to borrow under its existing $3 billion bond and $3 billion Sukuk programmes to finance the investments.
Thursday 10, January 2019
(Bloomberg) –APICORP plans to invest almost $1 billion in energy projects this year, boosting its assets even as oil prices falter.
Ahmed Ali Attiga, the Chief Executive Officer of APICORP, said, “New investments will diversify the portfolio away from the oil-rich Persian Gulf and into Iraq, Libya as well as Egypt, Morocco and the US.
Borrowings by energy producers in the six-nation Gulf Cooperation Council plunged 24 per cent last year as oil prices hit a four-year high. APICORP’s assets grew in 2018, rising 13 per cent as the company chased a share of what it forecasts will be a five-year, $919 billion investment spree for energy projects in the MENA.
“These projections will be maintained for the region in 2019,” and oil prices will not alter them much, Attiga said in an interview in Abu Dhabi. “The price of oil is rebounding, and I think it will settle in a range that is conducive to making the bulk of the investments happen.” Brent crude tumbled 42 per cent from 3 October and has been paring losses since late December.
The company raised $500 million in Sukuk and $750 million in that bond programme.
While geographic expansion is the focus for 2019, APICORP’s CEO is also eager to acquire assets beyond its traditional investments in oil, natural gas and power projects.
“I hope my success will be measured by how much we can grow, particularly in the areas where we are seeing the transformation of the energy sector in this region: renewables, energy efficiency, technology and anything related to it,” said Attiga.
APICORP is owned by the UAE, Saudi Arabia and Kuwait each holding 17 per cent, according to its website.