Saudi Arabia-based Arab Petroleum Investments Corporation (APICORP) arranged a $100m murabaha financing facility for the Egyptian General Petroleum Corporation (EGPC) to be over a 3 years tenor, reported Reuter.
The murabaha agreement, which is a cost-plus-profit arrangement that complies with Islamic finance standards, is planned to be used in purchasing liquid petroleum gas from the Arab Maritime Petroleum Transport Company, reported Saudi Gazette.
APICORP was established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). The company’s Deputy CEO and General Manager, Raed Al Rayes, said: “Apicorp has had a history of successful presence in Egypt, as well as, a lengthy and profitable association with EGPC. Supporting all areas of the regional energy industry goes to the very heart of Apicorp’s approach, the announcement is the latest evidence of our continued and successful efforts.”
In related news, in late September, the Egyptian Minister of Petroleum, Tarek El Molla, had met with his Saudi counterpart, Khalid Al Falih, to discuss methods of mutual cooperation between the two countries.