MENA’s multilateral development financial institution, Arab Petroleum Investments Corporation (APICORP) has started a $500 million countercyclical aid package to support its Member Countries and the region in the energy sector to lessen the influence of twin blows; COVID-19 pandemic and oil price fluctuations.
The $500 million package will be created to promote sustainable impact-driven projects by spreading investment for projects and working capital within the areas of utilities, renewables, petrochemicals, amongst other energy sub-sectors. APICORP will also extend its trade finance assistance to its Member Countries within the broader objective of decreasing the fiscal and current account constraints caused by prevailing market circumstances.
“In these challenging times, and whilst our Member Countries are fighting the spread of COVID-19, and its spillover effects, APICORP is committed to fulfilling its development mandate. The energy sector is a capital-intensive sector where we are observing investment reductions and delays in implementation more than previous downturns. As a trusted financial partner, APICORP will play a countercyclical role to address the funding shortfalls that may occur to our partners in the region as they work to meet planned commitments in critical projects and operations.”
“Support for the energy and related sectors, in our member countries and beyond, helps to guarantee energy security and access to finance in these times of crisis. We will be working with other multilateral development banks and financial partners to mobilize funding and mitigate the impact on these countries.” Dr.Attiga added.
APICORP which was rated Aa2 with a stable outlook by Moody’s recently announced a monumental jump in callable capital to $8.5 billion, as well as a notable increase in authorized and subscribed capital. This increase further bolsters APICORP’s financial sustainability and resiliency.