Arab Petroleum Investments Corporation (Apicorp) wants to raise at least 2 billion riyals ($533 million) from local Saudi Arabian banks, Meed said on Wednesday, citing sources familiar with the matter.      

The company is in talks with four or five banks to fund the club loan, which will be used to finance its ongoing lending activities. Apicorp could seek to raise more than $533 million.

'Apicorp had been looking at international markets to raise money, but that has become more difficult recently. With so much local liquidity, they should get a good deal from local banks,' one banker close to the deal told London-based Meed.

Apicorp is owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries (Oapec), with the Saudi Arabian and the UAE governments each holding 17 percent.

In May, the company's shareholders agreed to nearly triple the development bank's capital base to $1.5 billion, helping it move ahead with investment plans.

Apicorp raised 2 billion riyals through a debut bond issue in October last year. - Reuters