The momentum in sukuk sales, which are rebounding from a lull in 2015, is expected to continue into next year, according to Moody's. Courtesy Apicorp
The momentum in sukuk sales, which are rebounding from a lull in 2015, is expected to continue into next year, according to Moody's. Courtesy Apicorp
The momentum in sukuk sales, which are rebounding from a lull in 2015, is expected to continue into next year, according to Moody's. Courtesy Apicorp
The momentum in sukuk sales, which are rebounding from a lull in 2015, is expected to continue into next year, according to Moody's. Courtesy Apicorp

Apicorp credit profile enjoys strong shareholder support


Sarmad Khan
  • English
  • Arabic

Arab Petroleum Investments Corporation (Apicorp), the Saudi Arabia-headquartered multilateral development bank, enjoys a robust capital adequacy, a high-quality investment asset portfolio, de facto preferred creditor status and strong shareholder support, according to Moody's Investors Service

"Apicorp has maintained a high level of equity relative to its risk assets, and its corresponding capital adequacy ratios exceed regulatory guidelines," Steffen Dyck, a vice president and senior credit officer at Moody's said in a report. "Relatively low leverage also contributes to Apicorp's high intrinsic financial strength, while the increase in callable capital in 2016 underlines its shareholder support," Mr Dyck, who co-authored the report added.

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Founded in 1975 by the 10 member countries of the Organization of Arab Petroleum Exporting Countries, Apicorp is mandated to make investments that will bring strategic benefit to its members. The bank, headquartered in Dammam, is an independent financial institution functioning and carrying out its operations on a commercial basis.

The bank's strong capital position and low leverage offset its somewhat weaker-than-peers asset quality in its lending activity, Moody's noted. Apicorp's capital position is also supported by the strong quality of its asset portfolio, reflected in comparatively high weighted average credit ratings for different asset classes, the agency added.

A funding profile marked by a comparatively high share of short-term wholesale deposits is among the bank's credit challenges, according to Moody's. The bank has a relatively large asset-liability maturity mismatch, and high geographic and sector concentration relative to its peers.

Apicorp is making efforts to diversify its funding sources, the agency noted.  "Nevertheless, the degree to which the corporation remains reliant on wholesale deposits adversely affects Moody's assessment of its liquidity," it said.

The bank is operating in challenging environment, given the political turmoil in a number of member countries since 2011, which is topped by recent rifts in the region and a sustained declined in the oil prices which contributed to a year-on-year net profit decline of 13.2 per cent in 2016.

That said, asset quality and capital adequacy have not been materially impacted yet.

Bennie Burger, the head of corporate strategy and investments at Apicorp in March this year told The National that the bank expects the Mena region to open up to new investment opportunities as countries in the region push through reforms in an effort to prepare their economies for a post-oil world.

“The Saudi Aramco [IPO] and Vision 2030 have really created a lot of opportunities, and not just limited to Saudi Arabia,” he said at the time.

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Schedule:
All matches at the Harare Sports Club
1st ODI, Wed Apr 10
2nd ODI, Fri Apr 12
3rd ODI, Sun Apr 14
4th ODI, Sun Apr 16

UAE squad
Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed

Zimbabwe squad
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Dias Karmanov (KAZ) beat Mabrook Rasea (YEM) by points 2-1.

Male 54kg Round 1

Yelaman Sayassatov (KAZ) beat Chen Huang (TPE) TKO Round 1; Huynh Hoang Phi (VIE) beat Fahad Anakkayi (IND) RSC Round 2; ​​​​​​​Qais Al Jamal (JOR) beat Man Long Ng (MAC) by points 3-0; ​​​​​​​Ayad Albadr (IRQ) beat Yashar Yazdani (IRI) by points 2-1.

Male 57kg Round 1

Natthawat Suzikong (THA) beat Abdallah Ondash (LBN) by points 3-0; Almaz Sarsembekov (KAZ) beat Ahmed Al Jubainawi (IRQ) by points 2-1; Hamed Almatari (YEM) beat Nasser Al Rugheeb (KUW) by points 3-0; Zakaria El Jamari (UAE) beat Yu Xi Chen (TPE) by points 3-0.

Men 86kg Round 1

Ahmad Bahman (UAE) beat Mohammad Al Khatib (PAL) by points 2-1

​​​​​​​Men 63.5kg Round 1

Noureddin Samir (UAE) beat Polash Chakma (BAN) RSC Round 1.

Female 45kg quarter finals

Narges Mohammadpour (IRI) beat Yuen Wai Chan (HKG) by points.

Female 48kg quarter finals

Szi Ki Wong (HKG) beat Dimple Vaishnav (IND) RSC round 2; Thanawan Thongduang (THA) beat Nastaran Soori (IRI) by points; Shabnam Hussain Zada (AFG) beat Tzu Ching Lin (TPE) by points.

Female 57kg quarter finals

Nguyen Thi Nguyet (VIE) beat Anisha Shetty (IND) by points 2-1; Areeya Sahot (THA) beat Dana Al Mayyal (KUW) RSC Round 1; Sara Idriss (LBN) beat Ching Yee Tsang (HKG) by points 3-0.

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Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

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