MUSCAT – Energy Development Oman (EDO) has completed a $200 million tap issuance on its existing 10-year international sukuk, increasing the total size of the offering to $850 million, the company said on Monday.
The sukuk, originally issued at $650 million, carries a profit rate of 5.14% and will mature in January 2036.
EDO said the additional issuance forms part of its financing strategy aimed at supporting annual capital expenditure requirements, strengthening its debt portfolio structure and diversifying funding sources between the banking sector and international capital markets.
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The issuance was priced at a spread of 77 basis points over 10-year U.S. Treasury bonds, marking a significant improvement from the original issuance pricing and reflecting investor confidence in Oman’s creditworthiness, the company said.
HSBC acted as the sole bookrunner for the transaction.
Sultan Al Maamari, Chief Financial Officer of EDO, said the increased size of the U.S. dollar-denominated sukuk demonstrated the company’s ability to secure long-term financing on attractive terms despite continued volatility in global markets.
“The success of this issuance reflects continued international investor support for the Sultanate of Oman and confidence in the company’s strategy,” Al Maamari said.
He added that since its establishment, EDO has played a central role in strengthening the resilience and long-term sustainability of Oman’s energy sector by supporting stable hydrocarbon production, enhancing national energy security and reinforcing the sector’s contribution to long-term economic value creation.
