The Arab Energy Fund Successfully Prices Its Inaugural Landmark 3-Year USD Bond

Strong Investor Demand Underscores Confidence in TAEF’s Credit Strength.

RIYADH – 26 June 2025 – The Arab Energy Fund (TAEF), a leading multilateral impact financial institution serving the MENA energy sector, has successfully priced a USD 600 million, 3-year bond issuance, reflecting strong performance despite a challenging geopolitical backdrop.

The transaction attracted significant investor interest, enabling the Fund to upsize the offering from its originally planned USD 500 million. This strong demand resulted in a competitive pricing outcome, which was significantly within the secondary pricing levels.

“This transaction reflects both the strength of our credit profile and the growing confidence global investors place in our strategy and governance,” said Vicky Bhatia, Chief Financial Officer of The Arab Energy Fund. “Executing this deal under such market conditions is a testament to our investor relationships and disciplined approach to capital markets.”

Transaction Highlights:

• TAEF’s inaugural public 3-year bond issuance, supporting the development of a benchmark pricing curve for this tenor.
• Achieved highly competitive pricing of SOFR +50bps, despite secondary market spreads being significantly wider.
• Strong demand from global investors, including notable participation from high quality investor base represented by Global Central Banks and SSA institutions.
• Intra-day execution strategy ensured optimal timing and minimized market exposure.

Proceeds from the issuance will support TAEF’s business growth plans, in line with its mission to promote energy sustainability, regional economic development, and long-term financial resilience.