Apicorp seals trade finance deal with JP Morgan
Dubai, May 28, 2012
Arab Petroleum Investments Corporation (Apicorp), a Saudi-based multilateral bank owned by the Arab states, said it has signed an agreement with JP Morgan Treasury Services to boost its trade finance offering for energy companies.
Apicorp is owned by the member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). The UAE government owns a 17 per cent stake in Apicorp.
Under the trade finance services agreement, JP Morgan will provide Apicorp with trade finance processing support, including internet-based technology, and access to trade finance services from a global network of branches.
This enables the bank to significantly expand its range of trade finance services to energy companies.
Starting from June, Apicorp will offer a complete range of trade finance products and services to its clients, including letters of credit, collections and guarantees.
“We are pleased to announce another major milestone in Apicorp’s bid to diversify business streams and grow the Bank for the benefit of the Arab World’s energy sector,” remarked Ahmad Bin Hamad Al Nuaimi, the chief executive and general manager of Apicorp.
“This announcement has been preceded by extensive efforts with JP Morgan to set up a highly reliable service that can be increased in scale to meet rising demand,” he added
'Apicorp will initiate transactions and interface with customers as well as make final credit approval decisions,” said Al Nuaimi.
“Of the financial institutions that were considered for this alliance, we felt JP Morgan is the most suited partner, recognized for its expertise, wide banking network, and trade processing capability,' he stated.
Mark Garvin, the chairman of JP Morgan Treasury and Securities Services International, said “Our collaboration with Apicorp, to meet trade finance demand from the multilateral development bank’s clients in the Middle East, has resulted in much needed additional liquidity in the global trade finance markets.”
“This mandate is testimony to JP Morgan’s ongoing commitment to the region and strong local market knowledge, coupled with our global expertise in trade finance, which enables us to meet the cross-border trade finance needs of clients such as Apicorp.”
According to Al Nuaimi, the collaboration with JP Morgan will allow the bank to expand its geographical reach by extending facilities to Arab energy companies operating in the Arab World as well as in the emerging markets of Latin America, Africa, and Asia.
“It also has the added benefit of extending services to a wider range of energy companies and projects, including small and medium enterprises,” he added.-TradeArabia News Service