EDO issues USD 10-Year Sukuk worth OMR250 million

Muscat --- Energy Development Oman (EDO) has announced the successful issuance of a USD 10-year Sukuk of RO 250 million (USD 650 million), maturing in January 2036. This transaction is part of EDO’s ongoing financing strategy to support a portion of its annual capital expenditure requirements, diversify its funding sources, and optimise its capital structure.

Priced at a profit rate of 5.14%, the Sukuk achieved a credit spread of 100 basis points over the 10-year US Treasury benchmark, representing the tightest pricing ever secured by an Omani government-related entity (GRE). This success follows the recent upgrade of both EDO and the Sultanate of Oman to investment grade (BBB-) by Fitch, matching that from S&P.

This marks EDO’s third US dollar Sukuk issuance, building on the company’s earlier transactions in 2023 and 2024. The 5.14% profit rate compares favourably to the 5.875% achieved for EDO’s debut 10-year Sukuk and the 5.662% secured for the 7-year issuance in 2024, underscoring a strong pricing outcome, particularly in light of challenges facing international markets.

The decision to move swiftly in early January allowed EDO to take advantage of a constructive window in the market and secure a portion of its 2026 financing early in the year. Citi, J.P. Morgan and Standard Chartered acted as Global Coordinators on the transaction, while DIB, HSBC, Mashreq and Sohar International joined as Joint Bookrunners. The issuance attracted strong and diversified participation from investors across Asia, Europe, the GCC, the UK and the US.

With this latest transaction, EDO extends the average tenor of its debt portfolio while further optimising its overall cost of funding.

Commenting on the issuance, Eng. Sultan al Mamari, Chief Financial Officer at EDO, said: “EDO is delighted with the success of our latest USD Sukuk, which set a new benchmark for attractive pricing by an Omani GRE. We are pleased to have locked in a significant portion of our financing requirements early in 2026, given the uncertain global outlook. The success of this transaction reflects the improvement in EDO’s and Oman’s credit standing, as well as investor endorsement of EDO’s business strategy.”

Since its establishment, EDO has undertaken an instrumental role in shaping a more resilient and commercially sustainable energy sector in Oman. Through consistent delivery, disciplined investment, and closer integration across the energy value chain, the company has safeguarded production, strengthened energy security, and ensured the sector continues to generate long-term value for the Sultanate of Oman.