Riyadh, Saudi Arabia – The Arab Energy Fund (the “Issuer”), formerly known as APICORP, a leading multilateral impact financial institution focused on the MENA energy sector, has successfully issued a USD 650mn 5-year RegS senior unsecured bond under its Global Medium-Term Note Program.

The issuance, rated Aa2 (Stable) by Moody’s and AA+ (Stable) by Fitch, was priced at SOFR Mid-Swap (MS) +80 basis points (bps), translating into a 4.900% yield. Strong investor demand allowed The Arab Energy Fund to upsize the transaction from an initial plan size of USD 500mn to USD 650mn, with a final book order of over USD 935mn.

The issuance was settled on 26th February 2025, with final pricing set at SOFR MS +80 bps, enabling The Arab Energy Fund to price inside its existing curve as well as at the tighter end of similarly rated SSA peers.

Investor participation was high quality and well-diversified. The book-building process concluded with an oversubscription of 1.4 times, with significant demand from central banks, sovereign institutions, financial institutions, and real money managers.

Approximately 40% of the orderbook came from outside the MENA region, including strong interest from Asia, Europe, and offshore US investors. Allocations were distributed geographically as follows: 60% to MENA, 25% to Asia/Other and 15% to Europe. By investor type, 52% was allocated to banks, treasuries, and private banks, 38% to central banks, sovereigns and institutions and 10% to asset managers, fund managers, and hedge funds.

The issuance also reflects The Arab Energy Fund’s strong credit profile as well as the confidence of international investors in its strategic role within the global energy sector. It further enhances The Arab Energy Fund’s liquidity position and strengthens its presence in the international capital markets, paving the way for future issuances.

The Arab Energy Fund was advised on this issuance by BSF Capital, Doha Bank, First Abu Dhabi Bank, Mashreq, Nomura, and Standard Chartered, acting as Joint Lead Managers and Bookrunners.

About The Arab Energy Fund

The Arab Energy Fund is a multilateral impact financial institution focused on the MENA energy sector established in 1974 by the ten Arab oil-exporting countries. The Arab Energy Fund’s mission is to enable a secure and sustainable energy future for the region through a comprehensive range of financing and direct equity solutions and expert advisory services across the entire energy value chain to leading public and private sector business partners in 25 countries. The Arab Energy Fund applies best-practice ESG principles across all operations, with environmental and socially-linked projects comprising 20% of its USD 5.3bn loan portfolio. The Arab Energy Fund is the only energy-focused financial institution in the MENA region rated ‘Aa2’ by Moody’s, ‘AA’ by Fitch and ‘AA-’ by S&P.