Margin of 50 basis points
Strong global investor appetite
Assets now exceed $10 billion
The Arab Energy Fund (TAEF), formerly known as Apicorp, has raised $600 million through a new bond issuance aimed at supporting its business plans.
The three-year bond issuance was priced at a margin of 50 basis points over the Secured Overnight Financing Rate (SOFR), despite comparable bonds in the secondary market trading at significantly wider spreads, it said in a statement.
Initially targeting $500 million, TAEF increased the bond size following strong appetite from global investors, including central banks, sovereign entities and financial institutions.
No details were disclosed on the level of oversubscription for the new offering.
In February TAEF raised $650 million in a five-year bond issue that was 1.4 times oversubscribed. The bond was priced at a yield of 4.9 percent, settling at 80 basis points over the swap rate.
Headquartered in Riyadh, TAEF serves as a multilateral lender with a focus on the Middle East and North Africa’s energy sector.
As part of its five-year strategic roadmap, it has so far committed $1 billion to decarbonisation and energy transition projects.
Since its founding in the 1970s with a capital of $320 million, the fund’s assets have grown to exceed $10 billion, while its loan portfolio stands at $5.3 billion.
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