BUSINESS REPORTER
MUSCAT, MAY 19
Energy Development Oman (EDO) has successfully completed the tap issuance of its existing $650 million, 10-year sukuk, raising an additional $200 million and bringing the aggregate issuance to $850 million. The sukuk, which carries a profit rate of 5.14%, is set to mature in January 2036.
The tap issuance forms an integral component of EDO's broader funding strategy, designed to support a portion of the company's annual capital expenditure requirements while proactively managing its debt maturity profile and preserving a diversified mix of financing sources across the banking and international capital markets.
Amidst prevailing geopolitical headwinds in global financial markets, EDO maintained close surveillance of market conditions and investor sentiment, identifying an opportune execution window underpinned by Oman's demonstrated macroeconomic resilience.
The transaction priced at a credit spread of 77 basis points over the 10-year US Treasury benchmark, a significantly tighter level relative to the original issuance and reflecting robust investor appetite for both EDO credit and Omani sovereign exposure. HSBC acted as Sole Bookrunner on the transaction.
Commenting on the issuance, Eng Sultan al Mamari, Chief Financial Officer at EDO, said:
"EDO is pleased to have successfully upsized our 10-year USD sukuk, securing attractive long-term financing amidst an environment of continued global uncertainty. The strong reception from the international investor community is a testament to confidence in Oman's economic fundamentals and a clear endorsement of EDO's strategic direction and financial discipline".
Since its inception, EDO has played a pivotal role in advancing a more resilient and commercially sustainable energy sector in Oman. Through consistent operational delivery, disciplined capital allocation and deeper integration across the energy value chain, the company has safeguarded hydrocarbon production, reinforced national energy security and positioned the sector as a sustained generator of long-term economic value for the Sultanate of Oman.
Oman Observer is now on the WhatsApp channel. Click here
