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DOHA: Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank owned by the 10 member states of the Organisation of Arab Petroleum Exporting Countries (Oapec), including Qatar, maintained its robust growth momentum this year with its third quarter net profit almost doubling from last year. Q3 2012 net profit rose 90 percent to $12.67m from $6.68m posted in Q3 2011. The third quarter results were approved at Apicorp’s quarterly Board meeting, held in Cairo on October 5, 2012.
The government of Qatar owns a 10 percent stake in Apicorp.
Apicorp’s cumulative net profit for the first three quarters of this year reached $63.2m, a 33 percent jump from the $47.5m recorded over the same period last year. Total assets rose 13 percent to reach $ 5.1bn compared to $ 4.5bn at the end of September 2011.
Commenting on the results, Ahmad bin Hamad Al Nuaimi, (pictured) Chief Executive and General Manager of Apicorp said: “Our third quarter performance validates our strategic road map where we have maintained a balance between growth initiatives and risk management. Apicorp’s ability to enhance its lending capacity on the back of its capital base expansion and funding diversification not only makes it stand out in today’s tough banking environment, but is also delivering results for Apicorp’s shareholders and resulted in last month’s rating upgrade by Moody’s from A1 to a double Aa3.”
Earlier this month in Cairo, Apicorp’s Board ratified a five-year term loan worth SR440m ($117m) towards financing the Multilateral Development Bank’s operations. Earlier this year, the Board approved a five year term loan worth SR500m ($133m), and approved Apicorp’s first ever three year SR2.5bn ($667m Shariah-compliant term loan facility, which was oversubscribed by leading Saudi banks.
“In 2012, we expanded our array of value offerings aimed at supporting energy companies through a series of initiatives that included a partnership with J P Morgan to expand our energy trade finance services to the Arab World and beyond. At a time when international bank financing resources are getting scarcer in the region, we expect Apicorp to play an even more significant role in supporting energy-related transactions and being a growth-enabler for the Arab hydrocarbon industry,” said Al Nuaimi.
In Cairo, the Board gave the go-ahead for Apicorp to extend loans worth $ 387m; trade financing facilities worth $ 277m; and letters of credit to institutions both within and outside the Arab region.