Arab Palestinian Investment Company – APIC Issues 35 Million US Dollars Bonds
On January 18, 2017, Arab Palestinian Investment Company (APIC) issued new five-year bonds with a total nominal value of US$35 million in a private subscription with the participation of nine banks and companies from Palestine, Jordan and Bahrain. APIC’s General Assembly recently approved the issue in its extraordinary meeting held in Ramallah.
Receipt of subscription requests totaling US$80.5 million and representing 230% of the subscription offer
In a statement, Chairman and Chief Executive Officer of APIC Tarek Aggad said that the bond issuance holds many advantages for the company and its future plans, including optimizing the company’s capital structure. Aggad added, “There has been a big demand for subscription in APIC bonds, which was oversubscribed by 230%, and subscription requests totaling US$80.5 million have been received. If anything, it demonstrates the great appetite and trust APIC enjoys from the financial markets. It is also a reflection of the solid performance demonstrated by the company on the financial, operational and credit fronts.”
The subscribers of the US$35 million bonds are: Arab Bank, Palestine; Bank of Palestine, Palestine; Bank of Jordan, Palestine; Cairo Amman Bank, Palestine; Cairo Amman Bank, Jordan; Usoul for Arab Company, Bahrain; Quds Bank, Palestine; The National Bank, Palestine; and the National Insurance Company, Palestine.
Aggad also indicated that a number of the banks that subscribed to the first issue in 2012 have renewed their subscriptions for this second issue. This further demonstrates the ongoing and increasing interest and trust of existing bondholders throughout the past five years by cementing their relationship with APIC.
It is worth mentioning that APIC bonds are structured with a bullet repayment after five years, with a call/early payment option; are privately issued and are not traded nor listed on any stock exchange; are not convertible into shares; represent senior debt; and are collateralized with 110% collateral coverage ratio.
APIC is a foreign public shareholding investment company listed on the Palestine Exchange (PEX: APIC). Its investments are diverse across the manufacturing, trade, distribution and service sectors in Palestine, Jordan, Saudi Arabia and the United Arab Emirates through a group of nine subsidiaries: Siniora Food Industries; Unipal General Trading Company; Palestine Automobile Company; Medical Supplies and Services Company; National Aluminum and Profiles Company (NAPCO); Sky Advertising and Public Relations Company; Arab Palestinian Shopping Centers (BRAVO); Arab Leasing Company and the Arab Palestinian Storage and Cooling Company.
APIC is also one of the main founders of the Palestine Electricity Holding Company, the Palestine Power Generating Company and has a stake in the Bank of Palestine.