CAIRO: The Arab Petroleum Investments Corporation's (APICORP) extraordinary general assembly met in Cairo on Sunday and decided to increase the multilateral bank's subscribed capital by 173 percent, from $550 million to $ 1,500 million. Founded 35 years ago, APICORP, in which the government of Egypt has a 3 percent stake, is owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). The bank will also double its authorized capital from $1.2 billion to $2.4 billion, according to a statement. Paid-up capital was increased 36 percent, from $550 million to $750 million by capitalizing retained earnings of $200 million into 200,000 shares distributed pro rata to member shareholders. “The capital increase reflects the confidence of member states in APICORP's ability to catalyze growth and value creation in the region's oil and gas industry,” Ahmad Bin Hamad Al-Nuaimi, CEO and general manager of APICORP, said. “While the increased capital will contribute to our target of doubling our direct investment portfolio by the end of our current five-year plan, from a more long-term strategic perspective, it gives us the ability to significantly expand our investment and financing horizons and our role in the sector.” Shareholder states have previously supported APICORP with three capital increases in 1981, 1996 and 2003. In 2008, shareholders pledged $ 1 billion in deposit facilities. “APICORP's shareholders have waived receiving dividends consecutively for the last three years including 2010, which is akin to injection of capital,” Al-Nuaimi added. In 2010, its annual net profits rose 62 percent to $95 million, with total assets increasing 5 percent to $4.3 billion. At the end of the first quarter of 2011, APICORP recorded a net income of $39.3 million. APICORP is exploring opportunities in shipping, petroleum tank farms, refining and related infrastructure investments as well as financing, advising and structuring vital energy projects.
