Mubasher: The general assembly of Arab Petroleum Investments Corporation (APICORP) has ratified a landmark increase in callable capital to $8.5 billion from $1 billion at its annual general meeting (AGM).

It also approved a significant hike in the authorised and subscribed capital to $20 billion and $10 billion, respectively, said a press release on Monday.

A total of $500 million will be transferred from the corporation’s general reserves and retained earnings into its issued and fully paid capital.

The increase, which is the largest in the corporation’s history, is based on a recommendation by APICORP’s board.

According to the statement, the capital raise will cement long-term commitment towards APICORP’s sustainable growth plans for the benefit of its member countries, while fostering APICORP’s financial sustainability and resiliency, not to mention its overall financial position.

Commenting on the capital hike, CEO of APICORP, Ahmed Ali Attiga, 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.”

In the same vein, chief financial officer (CFO) of APICORP, Sherif Elsayed Ayoub, remarked: “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.”

In the fiscal year (FY) 2019, APICORP saw a 17% annual increase in net recurring income at $112 million when compared to $96 million, driven by corporate banking and treasury and capital markets.