Muscat: Oman Electricity Transmission Company (OETC), the sole owner and operator of Oman’s electricity transmission network and a key subsidiary of Nama Group, today announced the successful pricing and issuance of its inaugural $750 million 5-year Green Sukuk under its Green Financing Framework. This landmark transaction marks OETC as the first company to issue a Green Sukuk in the Sultanate of Oman, representing a major milestone in the country’s sustainable finance journey and demonstrating strong commitment to advancing the objectives of Oman Vision 2040.

The Green Sukuk achieved exceptional investor demand, with the offering being 2.8x times oversubscribed. This overwhelming response from regional and international investors reflects the strong confidence in OETC’s strategic role in Oman’s power sector, its solid credit fundamentals supported by ratings of Ba1 (stable) by Moody’s and BB+ (stable) by Fitch, and the company’s well-established sustainability credentials.

The transaction aligns directly with Oman Vision 2040’s strategic priorities of economic diversification, environmental sustainability, and transition towards a low-carbon economy. The issuance supports the national target of achieving 30% renewable energy penetration by 2030 and contributes to Oman’s commitment to reach Net Zero carbon emissions by 2050. The proceeds will be used exclusively to finance and refinance eligible green projects, including renewable energy interconnection infrastructure, grid modernization, energy efficiency initiatives, and transmission system enhancements that enable the integration of clean energy into the national grid.

The transaction was successfully executed by a strong banking syndicate. Citi, J.P. Morgan, and Standard Chartered Bank acted as Joint Global Coordinators, while Abu Dhabi Commercial Bank, Bank ABC, Bank Muscat, Crédit Agricole CIB, Citi, Dubai Islamic Bank, J.P. Morgan, Mashreq, Oman Investment Bank, and Standard Chartered Bank served as Joint Lead Managers and Bookrunners. The banking group played a pivotal role in structuring the transaction and organizing a comprehensive series of investor meetings that generated strong interest across diverse investor segments.

Commenting on the successful issuance, Eng. Hisham Abdullah Al Riyami, Acting Chief Executive Officer of OETC, stated: “The Green Sukuk marks an important milestone in OETC’s journey toward building a more resilient and sustainable electricity network for Oman. Through this issuance, we reaffirm our commitment to supporting the national energy transition by integrating more renewable energy into the grid alongside enhancing transmission efficiency. The strong investor response demonstrates trust in OETC’s long-term strategy and Oman’s stable economic environment”.

OETC’s Green Financing Framework, developed in collaboration with Citi and verified by DNV, aligns with the best international practices including the Green Bond Principles issued by the International Capital Market Association (ICMA) and Green Loan Principles. The framework provides a robust structure for OETC to raise sustainable finance through green bonds, sukuks, and loans to fund projects that deliver tangible environmental benefits and support the decarbonization of Oman’s electricity sector.

The sukuk issuance represents a strategic component of OETC’s broader funding and sustainability strategy, which aims to diversify the company’s capital base, optimize its debt portfolio, and align all financing activities with environmental, social, and governance (ESG) principles. This approach positions OETC as a leader in sustainable infrastructure development within the GCC region and demonstrates the company’s proactive role in enabling Oman’s green economy transformation.

OETC, a member of Nama Group, serves as the monopoly provider of electricity transmission services across the Sultanate of Oman. The company owns and operates the national electricity transmission network operating at voltages of 132kV and above, transmitting power from generation stations to distribution load centers across all governorates. OETC also manages the critical 220kV interconnection infrastructure linking Oman to the GCC Interconnection Authority network, playing a vital role in regional energy security and cooperation.

As Oman continues its journey toward economic diversification and environmental sustainability under Vision 2040, OETC’s Green Sukuk issuance stands as a landmark achievement that will help finance the infrastructure required to integrate renewable energy, modernize the transmission grid, and support the nation’s ambitious climate commitments.