Bahrain - The Arab Energy Fund (TAEF), a multilateral energy-focused financial institution in which Bahrain owns 3 per cent stake, has reported a 37pc year-on-year (YoY) increase in net income for the first half of 2024 at $121 million when compared with $88m for the same period last year.

Formerly known as Apicorp, TAEF’s delivery of continued growth, demonstrates resilience and impact of strategic focus and underscores the organisation’s ability to navigate the evolving energy landscape and its ability to deliver value to its stakeholders.

Commenting on the results, Khalid Al Ruwaigh, chief executive of TAEF, said: “TAEF’s half-year performance is a testament to our commitment to growth, business excellence, and advancing the region’s energy sector while leveraging a favourable interest rate environment and capital markets. By maintaining our strategic focus, operational enhancements, and investing in our human capital, we continue to deliver loan and equity solutions to our clients and partners to strengthen our position as the leading energy impact fund in the Mena region.”

The strong financial results were driven by a 6pc growth in total assets, which reached $10.48 billion as of June 2024, up from $9.88bn in December 2023. This growth was primarily fuelled by a long-term external bond issuance of $750m secured in the first half of 2024 to partly replace maturing borrowings and fund future growth.

Vicky Bhatia, chief financial officer of TAEF, said: “These results reflect our ability to capitalise on prevailing market conditions and our strategic focus on investing in innovative technologies and sustainable solutions. We remain dedicated to delivering exceptional value to our stakeholders and contributing to the region’s energy transformation.”

The investment portfolio increased to $1.44bn during the period, driven by strategic acquisitions and value accretion.

The corporate banking portfolio grew to $5.29bn recording a growth of 10.2pc over December 2023. This growth has been achieved across all of our key energy related sectors.

The treasury asset portfolio increased marginally over Dec 2023 with overall funding increasing to $7.1bn, witnessing a growth of 8pc on the back of a successful green bond issuance earlier this year.

As part of TAEF’s commitment to enhancing the regional energy landscape and promoting new energy solutions, the institution is undertaking a comprehensive review of its ESG and sustainability practices.

TAEF aims to release its first sustainability report, which will include Scope 1, 2, and 3 GHG emissions, by the end of 2024. The organisation’s sustainability journey has been highlighted by the establishment of the initial ESG policy framework, two successful green bond issuances, and the growth of its environmentally and socially-linked projects. These projects now represent 20pc of its $5.3bn loan portfolio, an increase from 18pc last year.

As TAEF continues to strengthen its position as the leading energy impact fund in the Mena region, the organisation remains dedicated to investing in innovative technologies and sustainable solutions and developing future industry leaders through initiatives like the ‘50+’ graduate training programme.

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