MUSCAT – The issuance forms part of the company’s strategy to finance a portion of its annual capital expenditure, diversify funding sources, and enhance the efficiency and flexibility of its capital structure. The sukuk were priced at a profit rate of 5.14 percent, with a margin of 100 basis points above ten-year US Treasury bonds, marking the lowest margin achieved by a government-owned company in the Sultanate of Oman.

The issuance follows the recent upgrade of the sovereign credit rating of the Sultanate of Oman and Energy Development Oman to investment grade by Fitch Ratings, in line with Standard & Poor’s BBB- rating. This marks EDO’s third US dollar sukuk issuance, following earlier offerings in 2023 and 2024.
The profit rate represents a notable improvement compared to the 5.875 percent rate recorded during the company’s first ten-year sukuk issuance and the 5.662 percent rate for the seven-year sukuk issued in 2024. The improved pricing reflects strong investor confidence despite ongoing volatility in global financial markets.

The early January issuance allowed the company to take advantage of favourable market conditions and secure part of its 2026 financing requirements well ahead of schedule. Citibank, JPMorgan, and Standard Chartered acted as global coordinators for the transaction, while Dubai Islamic Bank, HSBC, Mashreq, and Sohar International served as joint bookrunners.

The issuance attracted broad investor interest from Asia, Europe, the Gulf Cooperation Council countries, the United Kingdom, and the United States. With this transaction, Energy Development Oman continues to strengthen its debt portfolio by extending average maturities and improving overall financing costs.

Commenting on the subject, Eng. Sultan bin Ali Al Mamari, Chief Financial Officer of Energy Development Oman, said the successful offering reflects the company’s ability to access international capital markets on competitive terms and reaffirms investor confidence in its financial performance and credit standing. He added that securing part of the company’s 2026 financing early provides greater flexibility in managing financial obligations amid global market uncertainty.

He noted that the achievement coincides with the improved creditworthiness of both the company and the Sultanate of Oman, further strengthening investor confidence in EDO’s long-term strategy.
Since its establishment, Energy Development Oman has played a key role in strengthening the resilience and sustainability of the national energy sector through disciplined execution, responsible investment, and integration across the energy value chain. These efforts have supported production stability, enhanced energy security, and contributed to long-term economic value for the Sultanate.