The Arab Energy Fund’s H1 net income rises 37% to $121m

The Arab Energy Fund (TAEF), formerly known as APICORP, reported a robust 37 per cent year-over-year (YoY) increase in net income for H1 2024, reaching $121m, up from $88m in the same period last year.

The financial performance reflects TAEF’s strategic focus on advancing the region’s energy sector and its commitment to becoming the leading energy impact fund in the MENA region.

Total assets grew by 6 per cent from December 2023 to June, driven by strategic investments and successful capital market activities, including a $750m bond issuance in H1.

This long-term external bond was used to replace maturing borrowings and fund future growth, further strengthening TAEF’s balance sheet.

Khalid Ali Al-Ruwaigh, CEO of TAEF, commented on the results: “TAEF’s half-year performance reflects our unwavering dedication to growth and business excellence. By focusing on operational enhancements, strategic investments, and human capital development, we continue to deliver value to our clients and partners, solidifying our position as the leading energy impact fund in the region.”

The fund’s investment portfolio saw a notable increase to $1.44bn, fuelled by strategic acquisitions and value accretion.

Corporate banking sees growth at TAEF

The fund’s Corporate Banking portfolio also grew by 10.2 per cent, reaching $5.29bn as of June 2024. TAEF’s treasury assets increased by 8 per cent, supported by the successful issuance of a green bond earlier this year, raising the overall funding to $7.1bn.

Vicky Bhatia, CFO of TAEF, highlighted the institution’s ability to capitalise on favourable market conditions and its ongoing commitment to sustainability.

“Our strategic investments in innovative technologies and sustainable solutions are not only enhancing our financial performance but also contributing to the region’s energy transformation,” she said.

In alignment with its commitment to sustainability, the fund is conducting a comprehensive review of its ESG and sustainability practices.

It plans to release its first sustainability report, including Scope 1, 2, and 3 GHG emissions, by the end of the year.

Environmentally and socially linked projects now represent 20 per cent of the fund’s $5.3bn loan portfolio, up from 18 per cent last year.

As TAEF continues to strengthen its role as a key player in the MENA energy sector, the organisation remains focused on investing in future technologies and nurturing the next generation of industry leaders through initiatives like the “50+” graduate training programme.