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Muscat - Energy Development Oman (EDO) S.A.O.C. has announced the issuance of a US$750 million Sukuk. The issue was more than four times oversubscribed, reflecting strong investor confidence in both the Sultanate of Oman and EDO as its national energy champion. Investor participation was widespread, with over 115 orders from Europe, the UK, the US, the Middle East, and Asia.
The Sukuk was successfully priced at a profit rate of 5.662% with a term of seven years. This marks EDO’s second Sukuk issuance, following a previous deal in September 2023 for ten years at a profit rate of 5.875%.
Commenting on the new issue, EDO’s Chief Financial Officer, Sultan Al Mamari said, “This is a significant milestone, our second issuance in the last nine months. Our latest Sukuk deal is at a significantly lower profit rate, representing savings for EDO and the country.”
He added, “The outcome underscores international investors’ endorsement of our ongoing commitment to bolster Oman’s energy strategy. We deeply appreciate the trust our investors have placed in us, highlighting our robust creditworthiness and our transformation into a fully integrated energy enterprise.”
Standard & Poor’s and Fitch have assigned a BB+ rating to the senior unsecured Sukuk Al Ijara/Murabaha, which has been priced with a spread of 1.35% over US Treasuries. These trust certificates will be issued within the framework of EDO Sukuk Limited’s trust certificate issuance program.
Abu Dhabi Commercial Bank PJSC, Bank Muscat SAOG, Citigroup Global Markets Limited, Dubai Islamic Bank PJSC, Emirates NBD Bank PJSC, HSBC Bank plc, J.P. Morgan Securities plc, Mashreqbank psc, and Standard Chartered Bank collaborated as co-lead managers and bookrunners for the issuance.
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About EDO
Energy Development Oman (EDO) was established in December 2020 by Royal Decree (2020/128) to pursue new growth opportunities and realise efficiencies in Oman’s energy sector. The company is committed to becoming a world-class partner for growth while driving a sustainable energy future and focused on developing the country’s energy and
alternative energy sectors in line with Oman Vision 2040. The company holds a 60% ownership stake in Block 6 Oil Concession in Petroleum Development Oman (PDO), 100% ownership of Block 6 Non-Associated Gas Concession, and a 100% stake in Hydrogen Oman LLC.
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