By Joanne Bladd
Capital will be used to fund investment plans, firm aims to double portfolio in five years
Shareholders of Arab Petroleum Investments Corporation
(APICORP) agreed Tuesday to nearly triple the bank’s subscribed capital to
$1.5bn to fund its investment plans, the company said.
At a meeting in Cairo on Sunday, the general assembly agreed
to increase subscribed capital to $1.5bn from $550m, and double authorised
capital to $2.4bn, the firm said in a statement.
APICORP’s paid-up capital was increased 36 percent by
converting $200m of retained earnings in shares, the statement said.
“While the increased capital will contribute to our target
of doubling our direct investment portfolio by the end of our current five year
plan, it gives us the ability to significantly expand our investment and
financing horizons,” chief executive Ahmad Bin Hamad Al-Nuaimi said.
The Saudi-based company said shareholders had waived
receiving dividends for three consecutive years, the equivalent to an injection
The lender, which had assets of $4.3bn at the end of 2010,
expects to double its direct investment portfolio by the end of its 2010-2014
five year plan. It issued a SR2bn five-year bond last year.
APICORP is owned by 10 member states of the Organization of
Arab Petroleum Exporting Countries. It has invested in 22 oil and gas
joint ventures over the last 35 years, representing a combined value of $13bn.