Apicorp, the Arab Petroleum Investments Corporation, has launched a $500 million countercyclical support package aimed at supporting its clients in the energy sector to fund projects and address challenges caused due the COVID-19 pandemic and the oil price fluctuations.

According to a statement from the lender, the $500 million package will be deployed to support sustainable impact-driven projects by extending funding for projects and working capital within the areas of utilities, renewables, petrochemicals, amongst other energy sub-sectors.

“In these challenging times, and whilst our Member Countries are fighting the spread of Covid-19, and its spill over effects, Apicorp is committed to fulfilling its development mandate,” Dr Ahmed Ali Attiga, chief executive officer at Apicorp, said. “The energy sector is a capital-intensive sector where we are observing investment reductions and delays in implementation more than previous downturns.”

The company will also expand its trade finance support to its Member Countries within the broader objective of reducing the fiscal and current account pressures caused by current market conditions, it added.

“As a trusted financial partner, Apicorp will play a countercyclical role to address the funding shortfalls that may occur to our partners in the region as they work to meet planned commitments in critical projects and operations.”

“Support for the energy and related sectors, in our member countries and beyond, helps to guarantee energy security and access to finance in these times of crisis. We will be working with other multilateral development banks and financial partners to mobilise funding and mitigate the impact on these countries,” Dr Attiga concluded.