DUBAI: The Arab Petroleum Investment Corporation (APICORP), the Middle East’s energy-focused financial institution, has launched a $500m support package in the region to counter the effects of the COVID-19 crisis.
The money will go to provide energy and related projects with project funding and working capital, and to support trade finance at a time of big volatility in global energy markets.
Ahmed Ali Attiga, APICORP chief executive officer, said: “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,” he added.
APICORP said the $500m will be deployed to support sustainable, impact-driven projects within the areas of utilities, renewables, petrochemicals, amongst other energy sub-sectors. It will also expand its trade finance support to member countries with the broader objective of reducing the fiscal and current account pressures caused by current market conditions.
Based in Dammam, Saudi Arabia, APICORP – set up in 1975 – recently bolstered its financial resources to $8.5 billion of capital.
Attiga said: “He added, “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.”