The Arab Petroleum Investments Corporation (APICORP) has launched the first Formosa bond out of Saudi Arabia, targeting the Taiwanese investor base.
The oversubscribed $300 million transaction is described as the first successful Formosa bond out of the Kingdom.
In order to appeal to the local investor base, the Formosa bond, also known as a Taiwan foreign-denominated international bond, is listed on the International Board of the Taipei Stock Exchange. Credit Agricole CIB acted as the lead manager on the trade.
Hesham Farid, head of treasury and capital markets, commented: “We are delighted with the high level of interest from top quality investors in our first Formosa bond. The oversubscribed issue has allowed us to develop strong relationships with a new set of investors in Taipei. This is testament to APICORP’s impressive 40-year track record, unique ownership structure and strong fundamentals, and reassuring Aa3 credit rating.”
He added: “Having previously accessed the sukuk market in both the Saudi riyal and dollar, it was important for APICORP to continue to diversify our investor base, sources of funding and educate investors on the strength of the APICORP credit.”
Abrar Hussain, head of DCM for the MENA at Credit Agricole CIB, commented: “APICORP ticks all the boxes required by this specific investor base. It offers a strong Aa3 credit rating, a solid ownership by regional governments, diversification in terms of access to assets in several countries as well as strong fundamentals all rolled into one. This is the perfect name for the Taiwanese investor base.”

Source: Arab News