Energy Development Oman Issues US$750 Million Energy Sukuk, Oversubscribed Four Times

Energy Development Oman (EDO) S.A.O.C. has successfully issued a US$750 million Sukuk, marking a significant achievement for Oman’s national energy sector. The issuance, which garnered strong investor interest, reflects robust confidence in both EDO and the Sultanate of Oman as a strategic player in the global energy market.

The Sukuk issuance, EDO’s second in less than a year, was oversubscribed more than four times, attracting over 115 orders from global investors across Europe, the UK, the US, the Middle East, and Asia. The Sukuk was priced at a profit rate of 5.662% for a seven-year term, representing a notable reduction from EDO’s previous Sukuk issued in September 2023, which carried a profit rate of 5.875% over a ten-year term.

Sultan Al Mamari, Chief Financial Officer of EDO, expressed his satisfaction with the outcome, stating, “This issuance marks a significant milestone for EDO, demonstrating our ability to secure financing at a lower cost, which benefits both our company and Oman. The overwhelming response from investors underscores their confidence in our strategic direction and financial strength.”

The senior unsecured Sukuk Al Ijara/Murabaha has received a BB+ rating from both Standard & Poor’s and Fitch. Priced with a spread of 1.35% over US Treasuries, these trust certificates will be issued under the framework of EDO Sukuk Limited’s trust certificate issuance program.

A consortium of leading financial institutions including 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 acted as co-lead managers and bookrunners for the issuance, facilitating its successful execution in the international capital markets.

The proceeds from the Sukuk issuance will support EDO’s ongoing initiatives in Oman’s energy sector, enhancing its capabilities as a fully integrated energy enterprise and contributing to the country’s energy strategy.