The Arab Energy Fund, formerly known as APICORP, plans to invest up to $1 billion over the next five years in decarbonisation technologies, the Middle East and North Africa-focused multilateral financial institution said on Monday.
The planned investment and new name are part of a five-year strategy to 2028 to support the regional energy transition towards net-zero goals. The announcement was made during the COP28 climate summit in Dubai.
"Our strategy involves diversifying investments by championing technological advancements for enhanced energy efficiencies and driving sustained decarbonisation efforts," Chief Executive of the Arab Energy Fund Khalid Ali Al-Ruwaigh said in a statement.
The institution, which carries an investment grade credit rating from all the major ratings agencies, issued a five-year $750 million green bond after setting up a green bond framework in 2021. $610 million has so far been allocated to 11 regional projects.
Almost 20% of the institution's loan portfolio of $4.5 billion is currently for environmental and socially responsible initiatives, it said in the statement.
APICORP was established in 1974 by 10 Arab oil-exporting states. It is headquartered in Saudi Arabia and has assets of more than $8 billion according to its website.
