APICORP leverages its Preferred Creditor Status and becomes MENA’s first financial institution to launch an A/B loan program

APICORP leverages its Preferred Creditor Status and becomes MENA’s first financial institution to launch an A/B loan program

Saudi Arabia – The Arab Petroleum Investments Corporation (APICORP), the region’s only energy-focused multilateral financial institution, has launched an A/B loan structure aimed at encouraging international debt financing in its Member Countries which have limited access to foreign currency debt.

The A/B loan structure, which was unanimously approved by APICORP’s General Assembly at its last meeting in Jeddah on April 24, makes APICORP the first financial institution in MENA to offer this type of loan, in line with its drive to support the energy sector in its less developed Member Countries and encourage private sector participation for a more sustainable energy ecosystem.

Leveraging its Preferred Creditor Status, the Corporation will offer the whole loan to the borrowing entity in two tranches, A & B, inviting commercial financial institutions from the private sector to participate in the B loan through a Participation Agreement. APICORP will lead negotiations and administer the whole loan and be the lender of record.

Commenting on the announcement, Khalid Ali Al-Ruwaigh, Chief Executive Officer of APICORP, said, “The new A/B loan is a significant addition to APICORP’s extensive range of innovative financial solutions to support the sustainable development of the region’s energy sector. In launching this new facility, we can