DAMMAM — The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, announced Monday that its General Assembly ratified a landmark increase in callable capital to $8.5 billion at its Annual General Meeting (AGM), as well as a significant increase in authorized and subscribed capital. The increase, the largest in the corporation’s history, is based on the recommendation by APICORP’s Board of Directors.

The increase in the capital reinforces long-term commitment towards APICORP’s sustainable growth plans for the benefit of its member countries. The callable capital increase further bolsters APICORP’s financial sustainability and resiliency and its overall financial position.

The Corporation’s authorized capital was also increased to $20 billion and subscribed capital to $10 billion, as well as transfer $500 million from the corporation’s general reserves and retained earnings into its issued and fully paid capital.

Commenting on the increase in capital, Dr. Ahmed Ali Attiga, chief executive officer of APICORP, said: “As we enter the next stage of APICORP’s growth story and build upon its longstanding reputation as a trusted financial partner to the Arab energy industry, the capital increase will enable APICORP to fulfil its policy mandate by continuing to deliver sustainable impact-driven development projects and supporting investment activities. I appreciate the shareholders’ strong confidence in APICORP and their willingness to support it in its journey to support the growth trajectory in the regional energy and petroleum industries sector.”

Dr. Sherif Elsayed Ayoub, chief financial officer of APICORP, said: “The capital increase serves as one of the cornerstones of APICORP’s growth plans as per our board-approved risk appetite and five-year corporate strategy. These include increasing our lending and investment capacity to better meet the ever-growing needs of our public and private-sector partners in the energy sector. This remarkable show of support from our member countries shall also cement APICORP’s profile as a financially strong, well-capitalized, highly-liquid and consistently profitable MDB.”

APICORP recently disclosed its financial results for the year ended 2019, posting strong results including a 17% Y-O-Y increase in net recurring income to $112 million, up from $96 million at year end 2018. APICORP’s strong profitability in 2019 was driven by Corporate Banking and Treasury and Capital Markets, whose gross income increased 32% and 24% Y-O-Y to reach $201 million and $80 million, respectively. — SG