Arab Petroleum Investments Corporation authorizes US$400 million term loan facility

APICORP will use the loan proceeds for refinancing the $300 million facility maturing in May 2007 and for general funding purposes.

APICORP is an inter-Arab joint stock company established in November 1975 in accordance with an international agreement signed and ratified by the governments of the ten Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC). APICORP's mission is to contribute to the growth and expansion of the Arab petroleum industry through its participation in equity and debt financing services.

As at the end of 2006, APICORP has equity investments in 13 companies situated in seven Arab countries. The portfolio of APICORP's direct equity investments was valued at USD 257MM. The operations of these companies cover a wide array of activities: drilling and related services, seismic services, extraction of LPG, production of polyethylene, ethylene glycol, polypropylene, methyl tertiary butyl ether, aromatics, purified terepathalic acid, polyester fibers, linear alkyl benzene, carbon black, urea, NPK fertilizer, storage of petroleum products, and production of acrylic fiber.

The principal terms and conditions of the facility are as follows:

Amount: US$ 400 million
Maturity: 5 years
Repayment: Bullet
Interest Rate: Libor + 28.5bps p.a.
Governing Law: English

Roles in the syndication will be undertaken by the following institutions. For book-runners: The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Standard Chartered Bank, Sumitomo Mitsui Banking Corp. Europe Limited. The facility agent is Calyon Corporate & Investment Bank, while documentation agent, Mizuho Corporate Bank, Ltd. The signing ceremony goes to Gulf International Bank (B.S.C.) and for the publicity bank, Arab Bank plc.