Apicorp’s $750mn green bond oversubscribes three times

Apicorp’s $750mn green bond oversubscribes three times

The maiden $750mn green bonds of Arab Petroleum Investments Corporation (Apicorp), a multilateral development financial institution, has oversubscribed almost three times, indicating the growing demand for sustainable investment instruments and the overwhelming response from the sovereign investors.

Dr Sherif El Sayed Ayoub, chief financial officer of Apicorp

The US-denominated five-year benchmark issuance, the first green bond in the Mena (Middle East and North Africa) region issued by an energy-focused investment institution, garnered $2.2bn in orders from more than 80 institutional and sovereign investors.

In terms of geographic distribution, investors from outside the Arab region accounted for 93% of the total subscribers of the issuance, with 45% based in the UK and Europe. Notably, 63% of the subscribers are strictly ESG (environment, social and governance)-focused investors, said Apicorp, whose total funding to Qatari institutions currently amounts to about $550mn.

“The shift to more sustainable energy solutions is no longer an option, it is a must, and we at Apicorp are here to accelerate this shift within the region. Through our debut green bonds, Apicorp opens new investment avenues to build a more sustainable future for the Arab world and give millions of people access to safer, cleaner, and more affordable energy sources,” Dr Ahmed