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Oil and gas producer Energy Development Oman tightened the price on its $640 million 10-year benchmark sukuk to 100 basis points over US Treasuries from initial price thoughts in the T+135bps area.
The sukuk carries a 5.14% profit rate and yield, with a reoffer price at par.
Books peaked at $1.9 billion (excluding JLM interest) before settling at $1.3 billion at launch.
The Al-Ijara / Murabaha structure has an expected rating of BBB–/BBB– (S&P/Fitch), in line with the state-owned energy company’s own rating.
Citigroup, JP Morgan and Standard Chartered were mandated as joint global coordinators, as well as joint lead managers and bookrunners, alongside Dubai Islamic Bank, HSBC, KFH Capital, Mashreq and Sohar International.
EDO Sukuk is named trustee on the Regulation S senior unsecured trust certificates, with EDO Gas SPC named obligor and Energy Development Oman as the guarantor.
The sukuk will list on the London Stock Exchange’s Main Market.
In October, the company listed a sukuk worth 50 million Omani rials ($130 million) on the Muscat Stock Exchange with an annual profit rate of 4.40%.
(Writing by Bindu Rai, editing by Daniel Luiz)
