DAMMAM — The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, announced Wednesday that it has launched a $500 million countercyclical support package aimed at supporting its clients in member countries and the region in the energy sector mitigate the impact resulting from the COVID-19 pandemic as well as oil price fluctuations.

The $500 million package will be deployed to support sustainable impact-driven projects by extending funding for projects and working capital within the areas of utilities, renewables, petrochemicals, amongst other energy sub-sectors. APICORP will also expand its trade finance support to its Member Countries within the broader objective of reducing the fiscal and current account pressures caused by current market conditions

Dr. Ahmed Ali Attiga, chief executive officer of APICORP, 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, “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.”

APICORP, rated Aa2 with stable outlook by Moody’s, recently announced a landmark increase in callable capital to USD8.5 billion, as well as a significant increase in authorized and subscribed capital. This increase further bolsters APICORP’s financial sustainability and resiliency. — SG