The Arab Petroleum Investments Corporation (Apicorp) will look at supporting clients in the energy sector to tide over the difficulties of the Covid-19 pandemic, with disbursements of up to $2 billion this year.
Last year, the multilateral lender, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, rolled out a $500m counter cyclical package to support sustainable projects in the conventional and renewabels space.
"Normally our annual both debt and equity financing for new commitments is in the range of, I would say $1.7-2bn US dollars to new projects, be it financed through debt or financed through equity to public and to private sectors sponsors," Ahmed Ali Attiga, Apicorp chief executive said in an interview with The National.
The Dammam-based lender reported a 3 per cent rise in net income for 2020, it said in a statement on Tuesday.
Net income rose to $115 million from the year-earlier period. Apicorp's performance was supported by significant capital gains from its treasury and capital markets portfolio. The portfolio gained 488 per cent after netting $46m in capital gains last year.
The lender's corporate banking portfolio grew 6 per cent, while the treasury and capital markets portfolio expanded 13 per cent year-on-year.
Apicorp is in the process of identifying projects in post-conflict countries such as Iraq and Libya, and will increasingly focus on environmental, social and governance norms when investing in new projects.
In Iraq, the bank is in discussions with "various stakeholders - government and the private sector and other multilateral financial institutions to support Iraq, particularly in the renewable energy space and of course in the mainstream petroleum industries," said Mr Attiga.
The company will increasingly focus on increasing renewable capacities within its portfolio, which accounts for 20 per cent of clean power projects.
Last year, around 65 per cent of Apicorp's project finance was directed towards green energy projects, said Mr Attiga.
The company, which was set up by oil producers, Saudi Arabia, the UAE, Kuwait, Libya, Iraq, Qatar, Algeria, Bahrain, Egypt and Syria, will continue its focus on petroleum investments, but will demand greater sustainability in return.
"Conventional investments and projects have to start incorporating much stronger ESG standards, both as a condition for the financing and then, as monitoring of the asset itself and how ESG standards are applied," said Mr Attiga.
Global wealth managers have shifted focus towards greater sustainability in investing, with BlackRock, the world's largest investment firm incorporating climate change standards and green energy into its portfolio.
The company will go back to the market towards the second half of the year with a potential debt issuance of $500m to $1bn, Mr Attiga told Bloomberg TV in an interview on Tuesday.
Apicorp's balance sheet grew 7.5 per cent to $7.89bn in 2020, which is 5 per cent higher in terms of compounded annual growth registered over the past five years.
The bank's liquidity ratio reached its highest-ever at 349 per cent.
Apicorp also raised its authorised capital to $20bn from $2.4bn. Subscribed capital was also increased to $10bn from $2bn, while paid-up capital was boosted by $500m to $1.5bn. The company's callable capital also rose to $8.5bn from $1bn.
Corporate banking assets rose 6 per cent to reach $3.9bn booking 1.6 billion in drawdowns over the course of 2020.
Notably, 6 of the 11 project finance commitments in 2020 were in green energy or within the category of sustainable utility projects, Apicorp said.
They were part of the $500m package Apicorp launched last year support regional energy sector navigate the impact of Covid-19 as well as oil price volatility.
The bank's non-performing loan ratio was low at 0.59 per cent.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
Match info:
Leicester City 1
Ghezzal (63')
Liverpool 2
Mane (10'), Firmino (45')
Netherlands v UAE, Twenty20 International series
Saturday, August 3 - First T20i, Amstelveen
Monday, August 5 – Second T20i, Amstelveen
Tuesday, August 6 – Third T20i, Voorburg
Thursday, August 8 – Fourth T20i, Vooryburg
UAE currency: the story behind the money in your pockets
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Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
Upcoming games
SUNDAY
Brighton and Hove Albion v Southampton (5.30pm)
Leicester City v Everton (8pm)
MONDAY
Burnley v Newcastle United (midnight)
