APICORP signs a US$400 Million Term Loan Facility

17/05/2007 – Arab Petroleum Investments Corporation (APICORP) has mandated Arab Bank plc, Arab Banking Corporation (B.S.C.), Bank of Tokyo Mitsubishi UFJ, Ltd., Bayern LB, BNP Paribas, Calyon Corporate & Investment Bank, DZ Bank, Fortis Bank SA/NV, Gulf International Bank (B.S.C.), Mizuho Corporate Bank, Ltd., Natixis, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Europe Limited and WestLB AG to arrange a fully-underwritten US$400 million five year Term Loan. APICORP will use the loan proceeds for refinancing the $300 million facility maturing in May 2007 and for general funding purposes.

APICORP is an inter-Arab joint stock company established in Novembe1975 in accordance with an international agreement between the governments of the ten Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC). APICORP’s mission is to contribute to the growth and expansion of the Arab hydrocarbon industries through its participation in equity and debt financing services.

The last time APICORP tapped the market was in April 2005 with a US$250 million 5 year Term Loan Facility arranged by Arab Banking Corporation BSC. The Bank of Tokyo-Mitsubishi Ltd., BNP Paribas, Calyon Corporate and Investment Bank, Gulf International Bank BSC, Mizuho Corporate Bank Ltd., Standard Chartered Bank and Sumitomo Mitsui Banking Corporation Europe Limited.

APICORP has equity investments in 13 companies situated in seven Arab countries. The value of APICORP’s direct equity investments at 31st December 2006 stood at USD 257 million, based on the net asset values at the end of that year. The operations of these companies cover a wide array of activities: drilling and related services, seismic services, extraction of LPG, production of polyethylene, ethylene glycol, polypropylene, methyl tertiary butyl ether, aromatics, purified terepathalic acid, polyester fibers, linear alkyl benzene, carbon black, urea, NPK fertilizer, storage of petroleum products, production of acrylic fiber and methanol.

Principal terms and conditions are as follows:

Amount: US$ 400 million
Maturity: 5 years
Repayment: Bullet
Interest Rate: LIBOR + 28.5bps pa
Governing Law: English
Roles in the syndication will be undertaken by the following institutions:

Bookrunners:
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
BNP Paribas
Standard Chartered Bank
Sumitomo Mitsui Banking Corp. Europe Limited

Facility Agent: Calyon Corporate & Investment Bank
Documentation Agent: Mizuho Corporate Bank, Ltd.,
Signing Ceremony: Gulf International Bank (B.S.C.)
Publicity Bank: Arab Bank plc