Page 13 - MEOG Week 16 2022

MEOG NEWS IN BRIEF MEOG

POLICY financial support from richer neighboring The extraordinary general assembly of
nations including Saudi Arabia, the country Saudi Aramco shall be held within six months
Bahrain to resume outlined plans to balance its budget by 2022. from this approval date and the company
But last year it pushed back that target because shall satisfy all regulatory requirements and
payments into funds of the impact of the coronavirus pandemic on applicable laws, it was stated in the CMA
directive.
its economy.
Bahrain will resume making payments into Since then, soaring oil prices and an SAUDI GAZETTE
its rainy day fund, doubling the amount it economic rebound have led Finance Minister
contributes at oil prices over $80 a barrel, as it Sheikh Salman bin Khalifa Al Khalifa to say APICORP receives Moody’s
looks to rebuild savings tapped to handle the the country could now beat the 2024 goal.
economic impact of the pandemic. BLOOMBERG ‘A2’ sustainability rating
The country, one of the most heavily
indebted among the oil producers of the The Arab Petroleum Investment Corporation,
Middle East, will put $2 into the Future COMPANIES also known as APICORP, which provides
Generations Reserve Fund for each barrel energy and development finance, has received
of crude sold at over $80, according to a CMA approves Aramco’s Moody’s ‘A2’ sustainability rating, becoming
statement. It will set aside $1 when oil is over the first financial institution in the MENA
$40 and pay $3 if it exceeds $120. capital increase request region to achieve this, the company said in a
Global benchmark Brent has mostly traded statement.
above $100 following Russia’s invasion of Saudi Arabia’s Capital Market Authority In a report, Moody’s ESG Solutions
Ukraine in late February. (CMA) approved the capital increase request noted that the ‘A2’ rating has been assigned
In a stark turnaround from two years of Saudi Arabian Oil Company (Saudi to APICORP based on its capacity and
ago, soaring crude prices are transforming Aramco) through the issuance of bonus willingness to integrate ESG factors into its
the fortunes of the petrostates in the Gulf, shares. The CMA has issued its resolution strategy, operations, and risk management.
generating a windfall that’s now allowing the approving Saudi Aramco’s request to increase “I am proud that APICORP’s extensive
region’s most vulnerable economies to rebuild its capital from SR60 billion to SR75 billion work in mainstreaming sustainability across
finances, pay down debt and raise spending. through issuing one bonus share for every 10 its operations has been recognized with this
Even the biggest producers like Saudi existing shares owned by the shareholders. ‘A2’ sustainability rating,” said Ahmed Ali
Arabia, which is set to record its first budget The beneficiaries will be shareholders who Attiga, its CEO, said
surplus in about a decade this year, are are registered in the shareholders registry at Attiga added, “The rating reflects our
capitalizing on the boom times to add to its the Securities Depository Center as of the commitment to sustainable and inclusive
foreign assets and boost investment by its closing of the second trading day after the due development. Our green bond issuance, for
sovereign wealth funds. date, which will be determined later by the example, enables us to provide new avenues
Bahrain had halted payments into company’s board of directors. for investment in projects that further the
its reserve fund in 2020 and drew down The increased amount will be paid by accessibility of safe, affordable, and renewable
$450 million, almost half its assets, as the transferring an amount of SR15 billion energy sources for communities.”
coronavirus pandemic shut down economies from the “Retained earnings” account Moody’s added that APICORP’s share of
around the world and briefly sent oil prices to the company’s capital. Consequently, project financing in renewables and other
below zero. the company’s outstanding shares will areas of climate finance has increased in the
Bahrain received a $10 billion financial be increased from 200,000,000,000 to last three years by 10 percentage points to
aid package in 2018 to help it cope with high 220,000,000,000 shares, with an increase of reach 13 percent, which indicates continued
debt levels and budget deficits. As part of the 20,000,000,000 shares. growth in the future.

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