Development bank Arab Petroleum Investments Corp (Apicorp) plans to issue a Saudi riyal-denominated benchmark bond as part of its loan and equity portfolio expansion, the company said Wednesday. The lender, owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), said it has plans to launch the bond after an investor roadshow starting in Saudi Arabia early next week. The bond sale will be Apicorp's first foray into the capital markets, said the company in which Saudi Arabia and the United Arab Emirates each hold 17 percent stakes. It did not say how much it intends to raise from the offering but a benchmark bond is typically $500 million in size. “Conditions are very favorable for issuers with solid fundamentals like Apicorp,” said Ahmad Bin Hamad Al-Nuaimi, Apicorp's chief executive and general manager, in a statement. “Furthermore, the low interest rates and high liquidity environment in the Kingdom offer Apicorp the optimal conditions to launch its Saudi riyal issuance to raise funds.” Demand for bond issues from the region is seen high as yield-seeking investors scramble for debt offerings from emerging markets amid a low interest rate environment in more developed countries. The government of Dubai launched a $1.25 billion bond on Wednesday, its first sovereign issue since the 2009 debt crisis, with order books suggesting strong investor appetite. Earlier in the month, Apicorp said it was in “mature discussions” to divest two of its key equity stakes and reinvest the proceeds in new oil and gas companies in order to diversify its portfolio.