Arab Petroleum Investments Corporation (Apicorp) said it has signed a deal with the International Finance Corporation (IFC), a member of the World Bank Group, to co-finance Arab-owned energy projects in developing countries.

With this, Apicorp has become the first Arab multilateral development bank to sign the IFC’s master co-operation agreement (MCA). Apicorp is owned by the ten member states of the Organisation of Arab Petroleum Exporting Countries.

Apicorp said the MCA accession agreement has helped widen its role as a multilateral development bank.

The agreement enables Apicorp to partner with IFC to co-finance developing country energy projects in which Arab countries have made investments, said a top official.

The MCA promotes increased collaboration with international financial institutions to help standardise steps that lenders take when co-financing projects with IFC in developing countries.

Ahmed Hamad Al-Nuaimi, chief executive and general manager of Apicorp, said it was happy to partner with IFC to support economically-vital energy projects in the developing world.

"Such concerted support is critical to ensure crucial projects do not get delayed in the current economic environment, especially when such delays can have an impact on economic development. Many Arab states have oil and gas investments spanning the globe; the agreement with IFC will enable Apicorp to support these investments efficiently.”

Al-Nuaimi pointed out that Apicorp’s robust balance sheet and financial stability places it in an ideal position to finance oil and gas projects in developing economies.

"Our IFC tieup is consistent with strategic drive to widen our investments across the energy and petrochemical sector. Over the last few months, we have participated in financing transactions in the energy and petrochemical sector worth $1.3 billion with our commitments approximating $130 million."

"We are now looking for new opportunities to further grow this," he added.

Lars Thunell, IFC EVP and CEO, said: "IFC and Apicorp share a desire to support economic development and regional co-operation in the Mena region and to collaborate on energy-related projects in emerging markets globally."-TradeArabia News Service