Ramallah, Palestine: Arab Palestinian Investment Company (APIC) has successfully issued new five-year corporate bonds through three tranches denominated in the US dollars, Jordanian Dinars, and Euro currencies with a total nominal value of USD 120 million, of which USD 76.7 million, JD 22.64 million and €10 million through a private placement. Nine prominent banks and financial institutions participated in this issuance including Arab Bank, Cairo Amman Bank, Quds Bank, Bank of Palestine, Bank of Jordan, Jordan Ahli Bank, the Housing Bank for Trade and Finance, the Palestine Deposit Insurance Company and the International Finance Corporation (IFC). Earlier in May, APIC’s General Assembly approved and ratified the issuance of new corporate bonds with a total nominal value of up to USD 110 million with an option to increase it to USD 120 million during its extraordinary meeting that took place in Ramallah.
In his statement, Tarek Aggad, Chairman of the Board and CEO of APIC, said that this marks a significant step in reinforcing APIC’s capital structure and supporting its continued growth and investment in vital sectors across Palestine and the region. He noted that the total subscriptions exceeded the initially offered nominal amount of USD 110 million, reaching USD 126.144 million. Accordingly, the increase option to USD 120 million was exercised, and the necessary allocation was completed with the approval of the Palestine Capital Market Authority.
Aggad expressed his appreciation to all the institutions that participated in the APIC bonds subscription, emphasizing that their participation demonstrates their strong confidence in APIC group especially amidst the current challenges in Palestine and the region, most notably the severe and ongoing humanitarian and economic crisis in Palestine, and the deep recession which have significantly impacted the performance of the Palestinian Economy. He noted that several of the banks that had subscribed to the first, second and third bond issuances in 2012, 2017 and 2020 have since renewed their subscriptions for this fourth issuance, which demonstrates the great trust that the bondholders have placed in APIC over the years.
“IFC Signs USD 15 Million Subscription Agreement in APIC Bonds”
In this respect, and during a formal ceremony held at APIC offices in Amman, Jordan, the International Finance Corporation (IFC), a member of the World Bank Group and its investment arm, signed a bond subscription agreement with APIC valued at USD 15 million. The agreement was signed by Mr. Tarek Aggad, Chairman and CEO of APIC, and Mr. Ashruf Megahed, Regional Head for Manufacturing, Agribusiness & Services at IFC.
Welcoming the partnership, Aggad stated: “We are proud of IFC’s decision to subscribe to APIC bonds. This investment represents a strong vote of confidence in APIC’s vision, performance, governance, and resilience in facing challenges. This investment carries particular significance given the intensive and lengthy due diligence process for APIC Group on various levels including managerial, financial, environment, social and governance practices that preceded the signing of this agreement. This partnership reaffirms the strength of our operations, transparency, and unwavering commitment to adhering to the highest international standards and practices.”
In his statement, Megahed noted: “This marks IFC’s largest private sector transaction in West Bank and Gaza and is expected to help create jobs across different sectors and drive sustainable growth. It stands as a testament to our unwavering commitment to bolstering the private sector in some of the most challenging environments and during times of profound fragility.”
About APIC
APIC is a public shareholding investment company listed on the Palestine Exchange (PEX: APIC). It holds diversified investments across the manufacturing, trade, distribution and service sectors in Palestine, Jordan, Saudi Arabia, the United Arab Emirates, Iraq and Turkey through its group of subsidiaries: Siniora Food Industries Company; Unipal General Trading Company; Palestine Automobile Company; Medical Supplies and Services Company; National Aluminum and Profiles Company (NAPCO); Reema Hygienic Paper Company; Sky Advertising and Promotion Company; Arab Leasing Company and Arab Palestinian Storage and Cooling Company, employing over 3,400 staff through its group of subsidiaries. For more information, visit https://apic.ps/.
