The Arab Petroleum Investments Corporation (APICORP) issues USD 300 million 5-Year Dual Listed Floating Rate Formosa

• The transaction from APICORP is the third successful “Formosa” bond since its first Formosa issuance in 2016

Dammam, Saudi Arabia, April 03, 2019: The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, rated Aa3 by Moody’s with a positive outlook, successfully issued its third Formosa bond after accessing this market earlier in 2016 and 2017. The Aa3 rated USD 300 million 5-year Note which matures on April 01, 2024, offers investors a floating rate coupon.

The transaction attracted robust investor demand with order book close to three times oversubscribed, enabling APICORP to price its Formosa well within its secondary curve while also continuing to strengthen its investor access into Asia, innovate its funding profile and access efficient and cost-effective financing solutions.

Mr. Hesham Farid, Managing Director of Treasury & Capital Markets, APICORP, commented: “We are delighted with the successful issuance of APICORP’s third Formosa bond which is a reflection of our impressive 40-year track record, unique ownership structure and strong fundamentals.”

Credit Agricole Corporate and Investment Bank, Taipei Branch, HSBC Bank (Taiwan) Limited and Standard Chartered Bank (Taiwan) Limited acted as lead managers & book runners on the trade, while Taishin International Bank, President Securities, Bank of Taiwan, KGI Securities, Yuanta Securities and Fubon Securities acted as co-managers for the transaction.

Mr. Abrar Hussain, Head of DCM MENA, Crédit Agricole Corporate and Investment Bank, said: “We are pleased to have supported APICORP once again in the Formosa market. The issuance showcases the unique nature of the credit by not only achieving overwhelming demand, but also securing attractive terms.”

Faisal Qadri, Managing Director, Head of Debt Capital Markets and Structured Finance at HSBC Saudi Arabia, added: “The strong investor appetite achieved in this transaction is a reflection of investors’ confidence in APICORP’s unique credit profile and their ability to access diversified funding sources. HSBC is proud to have partnered with APICORP in this journey.”

Salman Ansari, Managing Director, Head, Capital Markets, West, Standard Chartered Bank, said: “Standard Chartered is proud to be working with APICORP yet again on another landmark transaction. The resounding success of the APICORP’s Formosa bond offering reflects the strong confidence investors have placed in APICORP’s credit and growth story. The transaction further cements APICORP’s strategy of becoming a regular issuer in the global markets.”