Arab Petroleum Investments Corporation (Apicorp) has signed a trade finance services agreement with JP Morgan treasury services to expand its trade offerings to energy companies in the Middle East.
As part of the agreement, JP Morgan will offer both funding and risk participation to Apicorp on a deal-by-deal basis.
“It’s a trade finance services agreement that will provide operations and technology support to Apicorp to enable it to significantly expand its range of services to energy companies,” says Jeremy Shaw, head of trade finance for Emea at JP Morgan.
“It is fair to say that in a number of markets, banks have a varied appetite for deals in the Middle East, which could be for a variety of reasons, so this deal will definitely help fill the gap in that respect.”
JP Morgan will also provide Apicorp with finance processing support, including internet-based technology, and access to global trade finance services. As a result, Apicorp will be able to offer its customers a range of trade finance products and services, including letters of credit, collections and guarantees.
Shaw says: “Apicorp is focused on its home core markets, so the ability to work with JP Morgan and gain access to our global network will enable Apicorp to meet the needs of clients who may be doing business in China and other major markets.”
Ahmad Bin Hamad Al Nuaimi, Apicorp chief executive and general manager adds: “The collaboration with JP Morgan allows Apicorp 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.”