• Refinancing of OMR facilities extends maturities and strengthens local partnerships

Muscat – Energy Development Oman (“EDO”) has completed an attractive USD 1 billion international loan alongside successfully refinancing its OMR loan facilities. Together, the transactions extend EDO’s debt maturity profile, reduce financing costs, and diversify its lender base, strengthening the company’s position to support future growth.

Mazin al Lamki, CEO of EDO, commented: “These transactions have met our primary goals of cost-efficiency and investor diversification, while strengthening our banking partnerships. They put EDO in a strong position to finance further growth and demonstrate the confidence that both local and international banks place in our credit standing and long-term strategy.”

The five-year USD 1 billion Term Loan was upsized from the initial USD 750 million following strong investor demand, with aggregate commitments exceeding USD 1.5 billion. More than half of the final allocations came from outside the GCC, led by major Asian banks, highlighting EDO’s ability to access diverse pools of international liquidity. Proceeds will be used for general corporate purposes (USD 750 million) and to prepay a portion of EDO’s existing USD 2 billion facility due in 2029 (USD 250 million), contributing to a smoother debt maturity profile. Mashreq and GIB acted as Joint Initial Mandated Lead Arrangers, Underwriters and Bookrunners, leading the syndication process, while Sohar International Bank joined as the sole Omani MLA.

AlSalt Al Kharusi, Country Head, Mashreq Oman, said: “At Mashreq, our role goes beyond capital – it’s about bridging global liquidity with national ambition. By leading this USD 1 billion syndication alongside world-class institutions, we have reinforced Oman’s ability to attract large-scale international capital on competitive terms. This transaction reflects our strong conviction in the Sultanate’s growth trajectory and our commitment to enabling the critical sectors that will help cement Oman’s position as a regional hub for energy and infrastructure finance.”

Shortly prior, EDO refinanced its two OMR loan facilities. The OMR 375 million Term Loan was refinanced at the same amount, extending its maturity to 2028 with two annual extension options at EDO’s discretion. The OMR 150 million Revolving Credit Facility was increased to OMR 200 million and also extended to 2028. Bank Muscat acted as lead arranger and Facility Agent for both financings, supported by sizeable commitments from Sohar International Bank for the Term Loan, and Bank Dhofar for the RCF.

Sultan al Mamari, CFO of EDO, said: “The strong support from Omani banks in our domestic refinancing, together with the breadth of international participation in the USD transaction, reflects market confidence in EDO’s strategy. These outcomes give us greater financial flexibility, a stronger maturity profile, and a more diversified lender base, supporting both current operations and our future growth.”

With reference to the OMR loan facilities, Ahmed Al Balushi, Deputy Chief Executive Officer – Banking at Bank Muscat, commented, “Bank Muscat, as the largest financial institution in Oman, is proud to be the lead arranger and facility agent for both facilities and appreciates the strong partnership with EDO”.

The breadth of investor participation across domestic and international banks reflects the confidence in EDO’s credit and in Oman’s energy sector. By securing attractive financing in a competitive global market, EDO demonstrates its resilience and sets a clear direction for how leading Omani credits can attract international capital with credibility and scale.

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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