• Balance sheet grew by 5.7% to
  USD 7.35 billion
• Net recurring income increased by
  17% between2018 to 2019 from USD 96 million to
  USD 112 million
• Upgrade by Moody's in October 2019
  to 'Aa2' with a stable outlook
• Approval of
  five-year strategy to align with the evolving energy landscape

DAMMAM, SAUDI ARABIA
- EQS Newswire - 14 April 2020 - The Arab Petroleum
Investments Corporation (APICORP), a multilateral
development financial institution, today disclosed its
financial results for the year ended 2019. Building
on record performance in 2018, APICORP posted strong results including a
17% Y-O-Y increase in net recurring income to USD112
million up from USD96 million (excluding non-recurring
items) at year end 2018.

Images: https://bit.ly/2wE3hzx

APICORP's
strong profitability in 2019 was driven by Corporate Banking and Treasury,
whose gross income increased 32% and 24% Y-O-Y to reach USD201 million and
USD80 million, respectively.

The Corporation's
balance sheet growth remained strong and resilient in 2019, with
a 5.7% increase from USD6.95 billion to USD7.35 billion from the
previous year. Notably,
leverage (debt-to-equity ratio) remained in check reaching 2.13
in December 2019 compared to 2.07 in the same period last year,
and capital adequacy improved slightly from 29.34% in 2018 to 29.6%
in 2019. 

In October
2019, APICORP's overall credit rating was upgraded by Moody's to
'Aa2' with a stable outlook from 'Aa3'.  The
achievement was due in large part to the steady improvement
in APICORP's liquidity and funding profile, high quality assets,
strong asset performance, and moderate leverage, amongst other
factors. This makes APICORP the only financial institution in the
MENA region with a 'Aa2' rating.

Commenting on
APICORP's results, Dr. Aabed bin Abdulla Al-Saadoun, Chairman
of the Board of Directors said: "As the world enters an
unprecedented period of economic uncertainty, I am reassured by the fact
that we have closed out the past year on a strong note. Our
business lines exhibited exceptional resilience on the back
of challenging market conditions presented by both geopolitical,
financial and industry developments in 2019. The
increase in net recurring income by 17% and Moody's credit
rating upgrade are both significant milestones that stand as a
testament to APICORP's solid fundamentals.   This
gives us the confidence to continue to support to the Arab
world's energy sector during a time when sustainable, impact-driven
projects have never been more needed."

Dr. Ahmed Ali
Attiga, Chief Executive Officer of APICORP,
said: "We are extremely proud of another successful year
for APICORP as we continue
to navigate a rapidly evolving energy
landscape. Our balance sheet growth to USD7.35 billion in
2019 paves the way for APICORP to continue an
upwards trajectory, notwithstanding the limitations that the
current coronavirus crisis poses upon all sectors of the global
economy. However, I believe that the work that we have put into
diversifying our portfolio in terms of sectors and geography as
well as our broad investor base, coupled with our
strong financial position, will serve us well in the coming
years and allow us to address the current challenges."

"When the
world eventually begins to recover from the dual impact of the coronavirus pandemic and oil
price fluctuations, we will most likely see changes in the
region," added Dr. Attiga. "As a trusted financial
partner to the regional energy sector, we are well positioned
to support sustainable investments, and entities, that can
accelerate both economic recovery and the low-carbon
transition. Going forward, we believe that there will be a greater
role for multilaterals like APICORP, serving in a countercyclical
capacity to reinvigorate the economies of the region. For
this, we remain committed to playing a strong developmental
role, particularly through leveraging on our partnerships in the
industry." 

A New 5-Year Corporate Strategy

In 2019,
APICORP finalized its 2020-2024 corporate strategy to align with the evolving
energy landscape. The strategy is underpinned by a more
integrated and agile model,
with sustainability embedded in all aspects of
operations. The corporate strategy for the next five
years places APICORP at the center of comprehensive offering to a diverse set
of clients enabled by partnerships and innovation to better serve the MENA
region's petroleum industries and energy sector.

Business Line Highlights

Corporate Banking

APICORP's
Corporate Banking assets increased by 5% Y-o-Y to reach USD3.69 billion, all
while diversifying the portfolio exposure, geographically
and sectorally, as well as maintaining a high
quality loanbook. Moreover, Corporate Banking booked USD1.4 billion
in commitments, thereby sustaining the profitability prospects of APICORP
not only in 2019, but also future years. In terms of income, Corporate
Banking had a record year, reaching USD121 million in income net of Libor and
impairments compared with USD90 million in 2018. Fee income continued to
show promise, even in a competitive landscape, where it increased 23%
Y-o-Y. Notably, the Gross NPL Ratio remained very low at
0.38% due to strong relationships with APICORP's partners and support from
Member Countries.

APICORP
continued to evolve its offerings with more focus on private sector-led
projects, primarily in the utility sector and trade finance, to complement
its strength in government-sponsored projects.

In line
with its commitment to apply ESG principles to all project
financing, APICORP continued its increased focus on environmentally-friendly
projects where its presence in the renewables sector was reinforced by its
support to several bidders on renewable PPPs in the region as well as a rooftop
PV project and a commitment to a Saudi private sector
company expanding into a wind farm overseas with private
sector partners.

Investments

APICORP
continued its prudent strategy of investing alongside like-minded investment
partners in quality businesses with strong management teams and solid growth
potential, with a focus on making investments in Member Countries and the
broader MENA region, as well as diversifying into opportunities outside
the region that offer exceptional profitability prospects and value-addition to
the energy sector. The foundation of APICORP's investment approach is
adopting a long-term perspective in the extraction of value from its investee
companies.

In 2019,
APICORP made its first direct equity investment in Kuwait in a leading oil and
gas services and facilities management company with a global footprint. It also
invested in a specialized wellbore services platform in the UK that serves the
oilfield services market. At year end, the total equity portfolio under
management stood in excess of USD1 billion across 19 direct and 3 indirect
investments. For 2020, APICORP is committed to playing a strong developmental
role by way of partnering with key players in the regional and global
energy sector, especially in light of the uncertainties created
by the coronavirus pandemic.  

Treasury & Capital Markets

APICORP's Treasury
and Capital Markets continued to strengthen the Corporation's
liquidity profile by working to ensure the maintenance of high liquidity
ratios, coupled with the rebalancing of the treasury
portfolio towards high-grade fixed income securities. This, in addition to
the improved geographical and sectoral diversification in the treasury
portfolio as well as to a healthy maturity mismatch position, were fundamental
in guaranteeing the soundness and resilience of APICORP's financial standing.

On the
liability side, despite market volatility, APICORP reiterated
its commitment towards sustainable growth by way
of a concerted effort to prioritize the diversification of APICORP's
funding base.  This resulted in successfully expanding the
investor profile to include players outside the GCC. In particular,
APICORP's debt capital market issuances saw an increase of investors from
Asia and the US. This was manifested by way of eight transactions
over the course of the year, including two Formosa Bonds worth USD300 million
and USD325 million issued in March and November, respectively, along with
several bilateral transactions with European and Asian financial
institutions. 

While these are
unprecedented times due to the impact of
the novel coronavirus on all
sectors and future petroleum and energy projects,
APICORP remains committed to supporting the development and
sustainability of its member countries and
the wider MENA region amidst the ever-evolving energy
landscape.

For the full 2019 financial results: bit.ly/2yYRHQi

For a summary of the 2019 financial results: bit.ly/3b6XyRR

About APICORP:

The Arab Petroleum Investments Corporation (APICORP) is a multilateral
development financial institution established in 1975 by an international
treaty between the ten Arab oil exporting countries. It aims to support and
foster the development of the Arab world's energy sector and petroleum
industries. APICORP makes equity investments and provides project finance,
trade finance, advisory and research. APICORP is rated  "Aa2"
with stable outlook by Moody's and its headquarters is in Dammam, Kingdom of
Saudi Arabia.

More information can be found at: www.apicorp.org