Arab Petroleum Investments Plans to Sell Saudi Arabia Riyal Benchmark Bond
Arab Petroleum Investments Corp., an energy investment unit of the Organization of Arab Petroleum Exporting Countries, plans to sell a Saudi riyal-denominated benchmark-sized bond as the company expands in the kingdom.
The bond will be issued after an investors’ road-show starting in Saudi Arabia early next week, the Al-Khobar, Saudi Arabia-based company said today in an e-mailed statement. It didn’t provide the size and pricing of the bond.
Companies in Saudi Arabia, the largest Arab economy, are stepping up bond sales to finance expansion plans as the government invests to spur economic growth and build infrastructure. A five-year, $400 billion stimulus package was announced by the government in late 2008.
“With $139 billion worth of projects set to be implemented in Saudi Arabia in the coming years, we see major future investment opportunities in the market,” Ahmad al-Nuaimi, the company’s chief executive officer, said in the statement. “Conditions are very favorable for issuers with solid fundamentals.”
Sukuk from borrowers in the world’s largest oil supplier may more than double to $4.5 billion this year from $2.1 billion in 2009, Riyadh-based HSBC Saudi Arabia Ltd. said earlier this year. Saudi Electricity Co., the Arab world’s largest utility, and Dar Al Arkan Real Estate Development Co., the biggest Saudi developer by market value, issued bonds in 2010.
To contact the editor on this story: Shaji Mathew in Dubai at email@example.com