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APICORP’s Debut Green Bonds Raise $750m

The APICORP logo
The APICORP logo
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APICORP’s Debut Green Bonds Raise $750m

The APICORP logo
The APICORP logo

The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution focused on the energy sector, announced that it has successfully raised $750 million from its debut green bonds.

The US-denominated five-year benchmark issuance, the first green bond in the MENA region issued by an energy-focused investment institution, was nearly three times oversubscribed, garnering $2.2 billion in orders from more than 80 institutional and sovereign investors.

All projects funded by APICORP using these green bonds will be aligned with the United Nations Sustainable Development Goals (SDGs), with a focus on renewable energy, green buildings, pollution prevention and control, and low-carbon technologies and solutions.

A designated Green Bond Committee (GBC) will oversee the evaluation process of the projects to ensure their compliance with APICORP’s recently launched ESG and Green Bond Frameworks, alignment to best practices, and that they support local and national energy sustainability strategies.

In addition, APICORP plans to issue an Annual Green Bond Report on the environmental impact of the bonds to ensure stakeholder visibility.

CEO of APICORP Dr. Ahmed Ali Attiga said, “The shift to more sustainable energy solutions is no longer an option, it is a must, and we at APOCORP are here to accelerate this shift within the region.

“Through our debut green bonds, APICORP opens new investment avenues to build a more sustainable future for the Arab world and give millions of people access to safer, cleaner, and more affordable energy sources.”

In terms of geographic distribution, investors from outside the Arab region accounted for 93 percent of the total subscribers of the issuance, with 45 percent based in the UK and Europe. Notably, 63 percent of the subscribers are strictly ESG-focused investors.

For his part, Chief Financial Officer of APICORP Dr. Sherif El Sayed Ayoub said, “The success of our green bonds reflects the strong demand in sustainable investments.

The interest from leading global institutional and sovereign investors in this issuance, particularly those focused on sustainable and responsible investing, also underscores the strong reputation APICORP has built and their trust in our ability to promoting the ESG agenda in the MENA region.”

APICORP recently announced that it will allocate almost $1 billion to green energy projects over the next two years.

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Saudi Arabia Leads Int’l Efforts to Combat Climate Change, Land Degradation

Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
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Saudi Arabia Leads Int’l Efforts to Combat Climate Change, Land Degradation

Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)

The presidencies of the next three upcoming Conferences of the Parties (COP) — Saudi Arabia, Azerbaijan, and Colombia — held a meeting on the sidelines of the United Nations General Assembly in New York to outline their ambitions regarding the three Rio Conventions.

Additional meetings are scheduled for the last quarter of this year to address the pressing challenges of climate change, desertification, and biodiversity loss.

The Rio Initiative takes its name from the historic agreements made at the 1992 Earth Summit in Rio de Janeiro, Brazil. It aims to foster cooperation in tackling land degradation, climate change, and biodiversity loss, while boosting international efforts under the United Nations' environmental agreements.

On Sunday, world governments gathered in New York to establish a framework for addressing the threats posed by climate change, desertification, and biodiversity loss. The meeting focused on enhancing cooperation between the upcoming COP presidencies.

The participants included Saudi Arabia, set to lead the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (COP16); Azerbaijan, which will chair the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29); and Colombia, which will head the 16th Conference of the Parties on Biological Diversity (COP16).

Saudi Arabia's presidency of COP16 highlighted the crucial importance of land restoration for the well-being of both people and the planet. It also underscored the devastating economic, social, and environmental impacts of land degradation and drought, which threaten biodiversity and increase greenhouse gas emissions, worsening food and water security challenges.

Dr. Osama Faqeeha, Saudi Arabia’s Deputy Minister of Environment, Water, and Agriculture, and advisor to the COP16 presidency, stated: "Climate change, biodiversity loss, and land degradation are interconnected aspects of the same crisis facing the planet, and they must be addressed in a more integrated and effective manner."

"This year presents a unique opportunity to unite efforts with Azerbaijan and Colombia and rally global support to address these interlinked environmental challenges, which have a destructive impact on the planet and its people," he added.

Colombian Minister of Environment and Sustainable Development Susana Muhamad emphasized the need for a unified agenda to be implemented on the ground. She expressed her readiness to establish a working group to bolster coordination and cooperation.

"The just transition in climate change must reflect interconnected efforts to protect natural ecosystems from degradation and harm," she said, adding: "We have a valuable opportunity to plan land use through a more integrated approach: decarbonization, environmental restoration, and improving human living conditions. COP16 for Biological Diversity is the ideal platform to deepen understanding and action on these efforts."

Mukhtar Babayev, president of COP29 for Climate Change, stressed the importance of "fostering cooperation, enhancing action efficiency, and achieving tangible results that benefit people and the planet by strengthening collaboration across the three Rio agreements."

He continued: "It’s essential to recognize that the goals of these agreements are fundamentally interconnected, and progress in one area can drive advancements in others."

Saudi Arabia called on governments attending the UN General Assembly to take decisive actions during COP16 for the United Nations Convention to Combat Desertification, which will be held in Riyadh in early December.

The UN Convention to Combat Desertification has set a target of restoring 1.5 billion hectares of degraded land by 2030. In Riyadh, Saudi Arabia's COP16 presidency will push for further concrete commitments to help achieve this goal.

The upcoming COP16 will be the largest and most comprehensive conference in the history of the convention, providing a global platform for collaboration. It will also offer opportunities for the private sector, civil society, and the scientific community to exchange solutions for combating land degradation, desertification, and drought.