The Arab Energy Fund records highest-ever net income for the second year in a row
- Net income surges by 51% YoY to reach USD 225mn
- Total assets grew by 12% YoY to reach USD 9.88bn
- Results driven by asset growth, strong capital gains, and a favorable interest environment
Saudi Arabia, 20 March 2024 – The Arab Energy Fund “TAEF” (previously APICORP) a multilateral impact financial institution focused on the MENA energy sector, today announced the financial results for the fiscal year that ended on December 31, 2023.
For the second consecutive year, TAEF recorded its highest-ever net income, driven mainly by asset growth, capital gains, optimization of the Institution’s funding and liquidity profiles, cost management and lending portfolio diversification, as well as a favorable interest environment.
Growth in net income surged by 51% year-on-year (YoY) to reach USD 225mn along with capital gains of USD 20.6mn. In addition, total assets grew by 12% YoY to reach USD 9.88bn.
Commenting on the results, Khalid Ali Al-Ruwaigh, CEO of The Arab Energy Fund, said: “The record financial results come at the end to a transformative year for The Arab Energy Fund. In addition to launching our new trademark name and strategy and relocating to Riyadh, we recorded our highest-ever net income in our 50-year history.”
“Our business lines contributed to our record-setting results. Guided by our new five-year strategy, we continue to build a solid foundation for the future by aligning our debt and equity portfolios and innovative solutions with our vision of becoming a pre-eminent impact investor in the MENA region and support a more sustainable energy ecosystem and circular carbon economy,” Al-Ruwaigh added.
Net operating income from TAEF’s treasurynearly tripled from the previous year to USD 31.2mn. This was namely due to the restructuring of the fixed income portfolio to optimize the liquidity and funding profile and enhance yields while managing interest rate risk. Treasury assets stood at over USD 3.6bn as of December 2023.
As part of TAEF’s ambitious vision and redesigned business approach focused on long-term growth and impact, the Institution relocated to Riyadh, Saudi Arabia’s dynamic capital city and one of the region’s leading financial hub.
This was followed by participating as a Climate Supporter in COP28, where it publicly announced its new trademark name, “The Arab Energy Fund”, and its new strategy, which includes investing up to USD 1bn over the next five years in decarbonization and local supply chains.
In addition, the Institution leveraged the global event to launch “50+”, a training program which aims to enable the next generation of energy industry leaders by giving university graduates an immersive six-month training program in the field of energy finance.
Business line highlights
Investments & Partnerships
As of the end of December 2023, TAEF’s Investments & Partnerships unit’s asset portfolio stood at USD 1.4bn, a 13% YoY growth. The unit’ gross operating income reached USD 110mn – a 9% YoY decrease – and scored strong capital gains of USD 20.6mn from the successful exit from Ashtead Technology.
Corporate Banking
TAEF’s Corporate Banking unit asset portfolio grew by 14% YoY at year-end 2023 to reach just under USD 4.8bn. Gross operating income increased by 82% YoY to USD 360mn as the unit continued to expand its range of financing solutions to include project bonds for the first time. It also entered new markets such as the United States and Nigeria and financed new energy subsectors and diversified its sector portfolio to include nuclear power and industrial waste management.
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ABOUT The Arab Energy Fund
The Arab Energy Fund is a multilateral impact financial institution focused on the MENA energy sector established in 1974 by the ten Arab oil-exporting countries. The Arab Energy Fund’s mission is to enable a secure and sustainable energy future for the region through a comprehensive range of financing and direct equity solutions and expert advisory services across the entire energy value chain to leading public and private sector business partners in nearly 30 countries. The Arab Energy Fund applies best-practice ESG principles across all operations, with environmental and socially-linked projects comprising 18% of its USD 4.8bn loan portfolio. The Arab Energy Fund is the only energy-focused financial institution in the MENA region rated ‘Aa2’ by Moody’s, ‘AA’ by Fitch and ‘AA-’ by S&P.
View The Arab Energy Fund’s ESG Policy Framework here.
For more information about The Arab Energy Fund, please visit: www.apicorp.org