Saudi Arabia-based Arab Petroleum Investments Corp (Apicorp) could issue its first sukuk later this year, as part of its recently-established $3 billion sukuk programme, the company said on Monday.

The sukuk issuance "will allow Apicorp to diversify its funding sources, reduce the overall cost of financing, extend the company's debt maturity profile, and enhance our access to a diverse set of global investors," Aabed al-Saadoun, chairman of Apicorp, said in a press statement.

Apicorp hopes to become a regular issuer of sukuk in global markets, with its strategy aimed at positioning itself alongside other multilateral development banks, the statement added.

Standard Chartered is acting as sole arranger for the sukuk programme, the release added.

Last month, Reuters reported that Apicorp, an energy investment company owned by the governments of the Organization of Arab Petroleum Exporting Countries, was looking to issue its debut sukuk this year and had mandated four banks for the offering.

Moody's has given the programme a provisional Aa3 rating, in line with its score for the company.-Reuters