Riyadh – Mubasher: MENA-focused The Arab Energy Fund (TAEF), formerly known as APICORP, recently delivered a $600 million long five-year issuance that was priced at SOFR +75 basis points (bps).
The transaction represents the fourth successful public benchmark issuance completed by TAEF in 2025, according to a press release.
Chief Finance Officer at The Arab Energy Fund, Vicky Bhatia, said: “This issuance is a testament of investors’ confidence in The Arab Energy Fund’s solid credit profile. Their continued trust has enabled us to reprice our curve in line with our funding strategy.”
The deal further underscores the fund’s robust credit profile and its status as a frequent and trusted issuer in global capital markets.
Meanwhile, the bond will mature in February 2031, priced inside secondary levels despite extremely busy primary markets with more than 40 trades announced globally around the same time.
The transaction achieved 10 bps of tightening during the book-building process, and around 20 bps inside prevailing secondary trading levels.
Moreover, the issuance attracted a sizeable peak orderbook that was twice the planned issuance size, enabling an upsizing to $600 million. Central banks, sovereign wealth funds, supranational institutions, and agencies represented the demand anchored by a high-quality and diversified investor base.
Consistent with The Arab Energy Fund’s previous issuances, the transaction achieved broad geographic participation and strong support from both MENA and international investors.
In 2024, the leading multilateral impact financial institution recorded a net income of $266 million which represented the highest-ever net income driven by strong asset growth across all business lines, compared with $225 million in 2023.
