Latest news with #TAEF
Zawya
26-06-2025
- Business
- Zawya
The Arab Energy Fund successfully prices its inaugural landmark 3-year USD bond
RIYADH – The Arab Energy Fund (TAEF), a leading multilateral impact financial institution serving the MENA energy sector, has successfully priced a USD 600 million, 3-year bond issuance, reflecting strong performance despite a challenging geopolitical backdrop. The transaction attracted significant investor interest, enabling the Fund to upsize the offering from its originally planned USD 500 million. This strong demand resulted in a competitive pricing outcome, which was significantly within the secondary pricing levels. 'This transaction reflects both the strength of our credit profile and the growing confidence global investors place in our strategy and governance,' said Vicky Bhatia, Chief Financial Officer of The Arab Energy Fund. 'Executing this deal under such market conditions is a testament to our investor relationships and disciplined approach to capital markets.' Transaction Highlights: TAEF's inaugural public 3-year bond issuance, supporting the development of a benchmark pricing curve for this tenor. Achieved highly competitive pricing of SOFR +50bps, despite secondary market spreads being significantly wider. Strong demand from global investors, including notable participation from high quality investor base represented by Global Central Banks and SSA institutions. Intra-day execution strategy ensured optimal timing and minimized market exposure. Proceeds from the issuance will support TAEF's business growth plans, in line with its mission to promote energy sustainability, regional economic development, and long-term financial resilience. About The Arab Energy Fund The Arab Energy Fund (TAEF / The Fund) is a multilateral impact financial institution focused on the MENA energy sector, established in 1974 by ten Arab oil-exporting countries. The Fund's mission is to support the energy ecosystem with debt and equity solutions to enable energy security and sustainability and to develop local value chains and services in the MENA region. TAEF creates impact by contributing to economic prosperity and enabling local communities via talent development and knowledge creation. The Fund offers a comprehensive range of funding solutions across the entire energy value chain to leading public and private sector business partners in over 35 markets. TAEF applies best-practice ESG principles across all operations, with environmental and socially linked projects comprising c.20% of its USD 5.8bn loan portfolio. The Arab Energy Fund is the only energy-focused financial institution in the MENA region rated 'Aa2' by Moody's, 'AA+' by Fitch and 'AA-' by S&P. Contacts: Communications Department The Arab Energy Fund zarasiddiqui@
Zawya
23-06-2025
- Business
- Zawya
IPTs out on Arab Energy Fund's 3 year USD notes
The Arab Energy Fund (TAEF) has mandated banks to arrange a series of fixed income investor calls starting 23 June 2025. A potential issuance of US dollar-denominated Regulation S 3-year senior unsecured notes under TAEF's Global Medium Term Note Programme may follow, subject to market conditions. Initial price thoughts (IPTs) are in the area of SOFR mid-swaps plus 60 basis points. Citi, Commercial Bank of Dubai, DBS Bank Ltd., and Emirates NBD Capital are acting as joint lead managers and bookrunners for the transaction. If issued, the notes are expected to be rated Aa2 by Moody's and AA+ by Fitch. The issuer itself holds ratings of Aa2 (stable) from Moody's, AA- (stable) from S&P, and AA+ (stable) from Fitch. The notes will be listed on Euronext Dublin. Vicky Bhatia, CFO of TAEF, said: 'Our plan is to establish a funding curve starting with three years, and at some point in the future we may consider also going up to seven years.' TAEF has previously completed private placements for three-year tenors at levels ranging from SOFR+40 to SOFR+45 basis points. (Reporting by Brinda Darasha; editing by Seban Scaria)
Gulf Business
28-02-2025
- Business
- Gulf Business
The Arab Energy Fund raises $650m in oversubscribed bond issuance
Image: TAEF The Arab Energy Fund, formerly known as APICORP, has successfully issued a $650m five-year senior unsecured bond under its Global Medium-Term Note Program, marking a landmark transaction for the multilateral financial institution. The bond, rated Aa2 (Stable) by Moody's and AA+ (Stable) by Fitch, was priced at SOFR Mid-Swap (MS) +80 basis points (bps), yielding 4.900 per cent. Strong investor demand allowed The Arab Energy Fund sukuk issuance: details Investor participation was well-diversified, with an oversubscription rate of 1.4 times. Central banks, sovereign institutions, financial institutions, and real money managers accounted for the bulk of demand. Approximately 40 per cent of the order book came from outside the MENA region, including strong interest from Asia, Europe, and offshore US investors. Geographic allocations stood at 60 per cent for MENA, 25 per cent for Asia/other, and 15 per cent for Europe. By investor type, 52 per cent was allocated to banks, treasuries, and private banks, 38 per cent to central banks, sovereigns, and institutions, and 10 per cent to asset managers, fund managers, and hedge funds. The successful issuance underscores The Arab Energy Fund's robust credit profile and reinforces investor confidence in its strategic role within the global energy sector. The transaction enhances the fund's liquidity position and strengthens its presence in international capital markets. BSF Capital, Doha Bank, First Abu Dhabi Bank, Mashreq, Nomura, and Standard Chartered acted as joint lead managers and book runners for the issuance.
Zawya
19-02-2025
- Business
- Zawya
IPTs out for The Arab Energy Fund's 5-year USD benchmark bond
Price guidance is out for The Arab Energy Fund's (TAEF) five-year benchmark USD-denominated Regulation-S offering. Initial price thoughts are in the 5-year SOFR mid-swaps (MS) + 90 basis points (bps) area. The multilateral impact investor, formerly known as Arab Petroleum Investments Corporation, has mandated banks to arrange a series of fixed income investor calls to market the bonds. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
18-02-2025
- Business
- Zawya
The Arab Energy Fund mandates banks on Reg S USD 5-year bond
The Arab Energy Fund (TAEF) has mandated banks to arrange a series of fixed income investor calls on Tuesday, 18 February 2025. A benchmark USD-denominated Regulation-S offering with a five-year tenor is expected to follow, subject to market conditions. TAEF, a multilateral impact investor, was formerly known as Arab Petroleum Investments Corporation. It was set up in 1975 and is funded by 10 governments--Saudi Arabia, Kuwait, the UAE, Libya, Qatar, Iraq, Algeria, Egypt, Bahrain and Syria, and had assets of over $10 billion as of June, 2024. It is rated Aa2 (stable outlook) by Moody's, AA- (stable outlook) by S&P, and AA+ (stable outlook) by Fitch. Nomura, BSF Capital, Mashreq and Standard Chartered Bank are the joint lead managers. The notes will be issued under Arab Petroleum Investments Corporation Global Medium Term Note Programme, with an expected rating of Aa2 by Moody's and AA+ by Fitch. The proceeds will be used for general corporate purposes. The notes will be listed on Euronext Dublin. (Writing by Brinda Darasha; editing by Seban Scaria)
