The Arab Energy Fund (TAEF), a multilateral impact financial institution in which Bahrain owns three per cent stake, has reported 51 per cent year-on-year (YoY) growth in net income to $225 million.
Previously known as Apicorp, the development bank focused on the Mena energy sector also saw capital gains of $20.6m last year.
In addition, total assets grew by 12pc YoY to $9.88 billion.
For the second consecutive year, TAEF recorded its highest-ever net income, driven mainly by asset growth, optimisation of the institution’s funding and liquidity profiles, cost management and lending portfolio diversification, as well as a favourable interest environment.
Commenting on the results, The Arab Energy Fund chief executive Khalid Al Ruwaigh said: “The record financial results come at the end to a transformative year for The Arab Energy Fund. In addition to launching our new trademark name and strategy and relocating to Riyadh, we recorded our highest-ever net income in our 50-year history.”
He added, “Our business lines contributed to our record-setting results. Guided by our new five-year strategy, we continue to build a solid foundation for the future by aligning our debt and equity portfolios and innovative solutions with our vision of becoming a pre-eminent impact investor in the Mena region and support a more sustainable energy ecosystem and circular carbon economy.”
Net operating income from TAEF’s treasury nearly tripled from the previous year to $31.2m. This was namely due to the restructuring of the fixed income portfolio to optimise the liquidity and funding profile and enhance yields while managing interest rate risk.
Treasury assets stood at over $3.6bn as of December 2023.
As part of TAEF’s ambitious vision and redesigned business approach focused on long-term growth and impact, the institution relocated to Riyadh, Saudi Arabia.
This was followed by participating as a climate supporter in COP28, where it publicly announced its new trademark name, The Arab Energy Fund, and its new strategy, which includes investing up to $1bn over the next five years in decarbonisation and local supply chains.
In addition, the institution leveraged the global event to launch ‘50+’, a training programme which aims to enable the next generation of energy industry leaders by giving university graduates an immersive six-month training programme in the field of energy finance.
As of the end of December 2023, TAEF’s investments and partnerships unit’s asset portfolio stood at $1.4bn, a 13pc YoY growth.
The unit’s gross operating income reached $110m, a 9pc YoY decrease, and scored strong capital gains of $20.6m from the successful exit from Ashtead Technology.
TAEF’s corporate banking unit asset portfolio grew by 14pc YoY at year-end 2023 to reach just under $4.8bn. Gross operating income increased by 82pc YoY to $360m as the unit continued to expand its range of financing solutions to include project bonds for the first time.
It also entered new markets such as the US and Nigeria and financed new energy subsectors and diversified its sector portfolio to include nuclear power and industrial waste management.
avinash@gdnmedia.bh
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