Arab Petroleum Investments Corporation (Apicorp), a multilateral bank owned by Arab states, has sealed a Shari’ah-compliant facility worth SR1 billion ($267 million) with top Saudi lender Al Rajhi Bank.

The five-year bilateral deal is aimed at retaining and boosting Apicorp’s medium-term funding. Al Rajhi Bank was the sole Murabaha facility arranger, lender and agent, said a Arab News report.

Commenting on the deal, CEO and general manager Ahmad Bin Hamad Al Nuaimi, said: "This loan reiterates Apicorp’s track record as a benchmark institution to deal with among the banking community and endorses Al Rajhi’s commitment to the Arab bank's mission in financing oil-related infrastructural development needs of the kingdom and the region."

Welcoming the deal, Al Rajhi Bank CEO Suliman Bin Abdulaziz Azzabin said: “We are immensely proud once again to be part of Apicorp’s fund raising program and the transaction demonstrates the strengthening ties between two premier institutions in Saudi Arabia.”

Established in 1987, Al Rajhi Bank is the largest retail bank in Saudi Arabia and the largest Islamic bank in the world with total assets of SR279 billion ($74.4 billion) and total shareholders' equity of SR38.4 billion ($10.2 billion) at end of December 31, 2013.

“We look forward to working more closely with Apicorp as they execute their growth strategy in coming years,” added Azzabin.-TradeArabia News Service