The Arab Energy Fund (AEF), previously known as Apicorp, has secured USD 650M through a five-year bond issuance, which was oversubscribed by 1.4 times.
Headquartered in Riyadh, AEF is a multilateral lender specialising in the MENA energy sector. The fund initially aimed to raise USD 500M but expanded the issuance size following strong investor interest, garnering over USD 935M in orders, AEF stated.
Moody’s rated the bond Aa2, and Fitch assigned it an AA+ rating. AEF issued it at a 4.9 per cent yield, settling 80 basis points above the swap rate.
Approximately 40 per cent of investors originated from outside the MENA region, including Asia, Europe, and offshore US entities, according to AEF.
Financial institutions accounted for the majority of allocations, with banks, treasuries, and private banks receiving 52 per cent, while central banks and sovereign entities secured 38 per cent.
As part of its five-year strategic plan, AEF has pledged USD 1B towards decarbonisation efforts to support the energy transition.
Since its establishment in the 1970s with an initial capital of USD 320M, AEF’s total assets have exceeded USD 10B, with its loan portfolio reaching USD 5.3B.
In January, a consortium led by AEF acquired full ownership of Metito Utilities, a Dubai-based company specialising in water and wastewater projects.
For this bond issuance, AEF received advisory support from BSF Capital, Doha Bank, First Abu Dhabi Bank, Mashreq, Nomura, and Standard Chartered, which served as joint lead managers and bookrunners.
