A debut two billion riyal ($533 million) bond issue from the Arab Petroleum Investments Corporation (Apricorp) drew orders for six billion riyals, it said on Wednesday.
The lender is owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), with the Saudi Arabia and the UAE governments each holding 17 per cent. The five-year bond was priced at 110 basis points over the Saudi Interbank Offered Rate (SIBOR) at the tighter end of price guidance of 110-120 basis points, and was the company's first offering in Saudi riyals.
It has a call option after three years and is registered on the Saudi Tadawul exchange.
"The overwhelming response to our first foray into the debt capital markets affirms investors' confidence in Apicorp's long-term financial stability, profitability and credit quality," Ahmad Bin Hamad Al-Nuaimi, chief executive and general manager of Apicorp said in a statement.
The proceeds of the bond will be used to further strengthen Apicorp’s financing and equity portfolio in the region's oil and gas industry." Calyon Saudi Fransi, Gulf International Bank, HSBC Saudi Arabia and Samba Capital were lead managers on the transaction.