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APICORP unveils new identity, up to $1bn plans to boost decarbonisation technologies

APICORP unveils new identity, up to $1bn plans to boost decarbonisation technologies
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Mubasher: The Arab Petroleum Investments Corporation (APICORP) is rebranding as The Arab Energy Fund as part of its visionary 2023-2028 strategy to serve the redesigned business approach, which is focused on long-term growth and impact, according to a press release.

The financial institution, which covers the energy sector in the MENA region, also announced a planned investment worth up to $1 billion over the coming five years that will be allocated for decarbonisation and related technologies.

The Arab Energy Fund is currently working on developing its environmental, social, and governance (ESG) Policy Framework which was first presented in 2021.

CEO of The Arab Energy Fund, Khalid Ali Al Ruwaigh, said: “APICORP’s (now known as The Arab Energy Fund) transformative strategy marks the institution’s next chapter, deeply rooted in our 50-year legacy and our distinctive role in the MENA energy sector. It highlights our commitment to impact-driven solutions, leveraging our deep industry expertise and regional access to enable the evolving energy landscape towards a net-zero world.”

Al Ruwaigh elaborated: “Our strategy involves diversifying investments by championing technological advancements for enhanced energy efficiencies and driving sustained decarbonisation efforts. Additionally, we are extending our investment scope beyond the core value chain, actively cultivating and shaping value chains within the region.”

The mentioned remarks and plans were announced during the current UAE-located event the 28th UN Climate Change Conference of the Parties (COP28), where The Arab Energy Fund is showcasing its role as a climate supporter in the Green Zone's Energy Transition Hub.

It is worth noting that the fund is the only multilateral impact financial institution across the MENA region. Following the establishment of its green bond framework in 2021, the entity issued the first-ever green bond by an energy-focused financial institution in the region. Meanwhile, the US-denominated five-year benchmark issuance raised an impressive $750 million, more than $610 million of which has already been directed towards 11 projects in MENA.

At the current time, 18% of The Arab Energy Fund’s $4.50 billion existing loan portfolio is pledged to supporting environmentally and socially responsible initiatives, besides fostering collaboration between the public and private sectors and establishing a path to have more sustainable financing.

In 2022, the regional entity recorded a 40% annual growth in net comprehensive income to $164 million, while its balance sheet grew by 10.80% with the assets reaching $8.85 billion.