Saudi-based Apicorp issues $300m Taiwan bond

Five-year ‘Formosa’ bond listed on Taipei Stock Exchange, says Saudi Arabian bank
By Sarah Townsend
Mon 03 Oct 2016 12:57 PM

Saudi Arabia-based Arab Petroleum Investments Corp (APICORP) has issued a five-year floating rate note in Taiwan, its first bond in the Taiwan market.

The oversubscribed $300 million note is the first ‘Formosa’ bond (a Taiwan foreign-denominated international bond) out of Saudi Arabia, APICORP said.

It added that the Formosa bond is listed on the International Board of the Taipei Stock Exchange “to appeal to the local investor base”.

Credit Agricole CIB acted as the lead manager on the trade.

Hesham Farid, head of treasury & capital markets at APICORP, said: “We are delighted with the high level of interest from top quality investors in our first ‘Formosa’ bond.

“The oversubscribed issue has allowed us to develop strong relationships with a new set of investors in Taipei.

“This is testament to APICORP’s impressive 40-year track record, unique ownership structure and strong fundamentals, and reassuring Aa3 credit rating.” To be traded in Taiwan, Formosa bonds must have a ‘BBB’ credit rating or higher.

Farid continued: “Having previously accessed the sukuk market in both Saudi Riyal and US Dollars, it was important for APICORP to continue to diversify our investor base, sources of funding and educate investors on the strength of APICORP credit.”

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