The Arab Energy Fund (TAEF), previously APICORP, a multilateral impact financial institution focused on the MENA energy sector, has 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 $225 million in addition to capital gains of $20.6 million. Total assets grew by 12% YoY to reach $9.88 billion. 

 

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 treasury nearly tripled from the previous year to $31.2 millon. 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 $3.6 billion 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 $1 billion 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 and Partnerships: As of the end of December 2023, TAEF’s Investments & Partnerships unit’s asset portfolio stood at $1.4bn, a 13 per cent YoY growth. The unit’ gross operating income reached $110 million – a 9 per cent YoY decrease – and scored strong capital gains of $20.6 million from the successful exit from Ashtead Technology.

 

Corporate Banking: TAEF’s Corporate Banking unit asset portfolio grew by 14 per cent YoY at year-end 2023 to reach just under $4.8 billion. Gross operating income increased by 82 per cent YoY to $360 million 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 US and Nigeria and financed new energy subsectors and diversified its sector portfolio to include nuclear power and industrial waste management. --OGN/TradeArabia News Service