Muscat – Energy Development Oman (EDO) has successfully completed the tap issuance of its existing USD 650 million, 10-year Sukuk, raising an additional USD 200 million and bringing the aggregate issuance to USD 850 million. The Sukuk, which carries a profit rate of 5.14%, is set to mature in January 2036. 

The tap issuance forms an integral component of EDO's broader funding strategy, designed to support a portion of the company's annual capital expenditure requirements while proactively managing its debt maturity profile and preserving a diversified mix of financing sources across the banking and international capital markets.

Amid prevailing geopolitical headwinds in global financial markets, EDO maintained close surveillance of market conditions and investor sentiment, identifying an opportune execution window underpinned by Oman's demonstrated macroeconomic resilience.

The transaction priced at a credit spread of 77 basis points over the 10-year US Treasury benchmark, significantly tighter level relative to the original issuance and reflecting robust investor appetite for both EDO credit and Omani sovereign exposure. HSBC acted as Sole Bookrunner on the transaction.

Commenting on the issuance, Eng. Sultan al Mamari, Chief Financial Officer at EDO, said:

"EDO is pleased to have successfully upsized our 10-year USD Sukuk, securing attractive long-term financing amid an environment of continued global uncertainty. The strong reception from the international investor community is a testament to confidence in Oman's economic fundamentals and a clear endorsement of EDO's strategic direction and financial discipline."

Since its inception, EDO has played a pivotal role in advancing a more resilient and commercially sustainable energy sector in Oman. Through consistent operational delivery, disciplined capital allocation, and deeper integration across the energy value chain, the company has safeguarded hydrocarbon production, reinforced national energy security, and positioned the sector as a sustained generator of long-term economic value for the Sultanate of Oman.

About EDO

Energy Development Oman (EDO) was established by Royal Decree in December 2020, becoming Oman’s national energy company.  Tasked with leading the nation’s energy sector, its core objective is to ensure efficient, secure, and cost-effective energy for national prosperity in line with Vision 2040’s economic growth goals.

EDO’s mandate is to optimise the commercial potential of Block 6 where it holds a 60% stake in the oil concession and 100% ownership of the gas concession.  A key enabler in Oman’s energy transition journey, EDO aims to balance the reliance on traditional hydrocarbons with renewable energy, including solar and wind.  

EDO’s current strategy encompasses the oversight of government owned energy assets in Block 6, optimising its operating models and the consolidation of its procurement and supply chain processes. EDO is focused on the management of the assets to improve cash-flow as well as identifying and structuring new income-generating opportunities.  With these initiatives, EDO is bolstering Oman’s energy security and providing a steady revenue stream for the government.

Fostering a supportive ecosystem for the energy industry, EDO works closely with the public and private sector to establish an enabling regulatory and business framework for foreign investment in green energy initiatives. This collective effort is instrumental in achieving the nation’s 2050 net-zero goals and building a low-carbon future.

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