APICORP Participates in USD 200 Million Refinancing deal for National Petroleum Services Group (NPS)

• Deal demonstrates confidence in NPS’s strong track record and will accelerate the expansion of the company’s growing regional footprint

Dammam, 15 February, 2015: The Arab Petroleum Investments Corporation (APICORP), an investment company focused on the energy sector in the Arab world, has participated in a successful USD 200 million refinancing arrangement for National Petroleum Services Group (NPS), in conjunction with HSBC, Emirates NBD and Al Hilal Bank. The refinancing was for a USD 150 million fixed rate Islamic facility and a working capital facility of USD 50 million.

In line with its five-year growth strategy, NPS will use the refinancing to restructure their existing debt and working capital facilities. The arrangement offers the company better terms and will positively impact the company’s bottom line.

NPS is one of the largest regionally owned oil and gas providers in the Middle East delivering drilling, customised well services and support to customers across the Middle East, North Africa and South East Asia. Its operations include well services, wireline logging, well testing, and integrated drilling. NPS employs around 1,500 people and operates in 12 countries.

This announcement marks another important milestone in NPS’s growth trajectory. In April 2014, the company was acquired by a consortium of investors led by sovereign-backed investment firm Fajr Capital, and comprising of APICORP, Waha Capital, and other regional institutional investors.

Commenting on the deal, Ahmad Al Nuaimi, CEO of APICORP, said: “We are delighted to have played a significant role in financing the growth plans of NPS, which is an international market leader in the oil and gas servicing sector. APICORP has considerable experience, gained over 40 years, in providing equity and debt financing to companies operating in the energy sector, including some of the world’s largest businesses. We have a substantial balance sheet and a quality loan book of around USD 3 billion, all of which is dedicated to the energy sector.”

“APICORP is a value adding partner of choice for businesses in the region. We can provide considerable assistance to companies through our two-pronged approach of equity investment and debt financing. This capability makes us one of the sector’s strongest and most robust financial institutions in the MENA region.”

Adnan Ghabris, CEO of NPS Group, added: “Through this financing deal, NPS was meant to raise additional resources to fund our continued growth. On the strength of its new shareholders and NPS’s financial track record, we were able to attract many major financiers in the region, and we are pleased to have concluded this facility with a club of financial institutions that includes HSBC, Al Hilal, APICORP and Emirates NBD. The facility will fuel NPS’s growth over the next five years by providing secure long term financing at attractive rates and a flexible working capital facility.”

Ahmad Abdelaal, Regional Head of Corporate Banking and Structured Finance, HSBC Middle East and North Africa, said: “We are deeply proud of working with NPS as Global Coordinator, Mandated Lead Arranger and Financier for their refinancing arrangement. Through this deal, NPS will be able to accelerate the expansion of their growing regional footprint. It also demonstrates our strong commitment to building long term relationships and delivering strategic financing to our prime corporates.”