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- Total assets grew 6% from December 2023 to June 2024.
- TAEF is dedicated to advancing the region’s energy sector and its vision to be the leading energy impact fund in the MENA region.
Riyadh, Saudi Arabia - The Arab Energy Fund (TAEF), formerly known as APICORP, a leading multilateral energy-focused financial institution, announced its financial results for the first half of 2024, delivering continued growth, demonstrating resilience and impact of strategic focus.
TAEF reported a 37% year-over-year (YoY) increase in net income, which reached USD 121mn for the period ending June 30, 2024, compared to USD 88mn in the same period last year. This performance underscores TAEF's ability to navigate the evolving energy landscape and its ability to deliver value to its stakeholders.
Commenting on the results, Khalid Ali Al-Ruwaigh, CEO 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 favorable 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 6% growth in total assets, which reached USD 10.48bn as of June 2024, up from USD 9.88bn in December 2023. This growth was primarily fueled by a long-term external bond issuance of USD 750mn secured in the first half of 2024 to partly replace maturing borrowings and fund future growth.
Vicky Bhatia, CFO of TAEF, said: "These results reflect our ability to capitalize 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."
Key Highlights:
Investments & Partnerships: The investment portfolio increased to USD 1.44bn during the period, driven by strategic acquisitions and value accretion.
Corporate Banking:
The Corporate Banking portfolio grew to USD 5.29bn recording a growth of 10.2% over Dec 2023. This growth has been achieved across all of our key energy related sectors’
Treasury:
The Treasury asset portfolio increased marginally over Dec 2023 with overall funding increasing to USD 7.1Bn, witnessing a growth of 8% 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. TAEF’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 20% of its USD 5.3 billion loan portfolio, an increase from 18% last year.
As TAEF continues to strengthen its position as the leading energy impact fund in the MENA region, the organization remains dedicated to investing in innovative technologies and sustainable solutions and developing future industry leaders through initiatives like the "50+" graduate training program.
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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.
For more information about The Arab Energy Fund, please visit: www.apicorp.org
For more information, please contact:
| Raeda Al-Sarayreh The Arab Energy Fund Email: ralsarayreh@apicorp.org | Simon Hailes Edelman Smithfield Email:simon.hailes@edelmansmithfield.com | Yasa Ahmad Edelman Smithfield Email:yasa.ahmad@edelmansmithfield.com |