Muscat – Energy Development Oman (EDO) on Wednesday announced the successful issuance of a $650mn (approximately RO250mn) 10-year sukuk, maturing in January 2036. The transaction forms 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 rating (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 with 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 lower oil prices and increased geopolitical uncertainty.
The decision to move swiftly in early January allowed EDO to take advantage of a favourable market window and secure a portion of its 2026 financing early in the year.
Citi, JP 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, Sultan al Mamari, Chief Financial Officer at EDO, said, “EDO is delighted with the success of our latest US dollar 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 played 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.
EDO’s current strategy encompasses the oversight of government-owned energy assets in Block 6, optimising its operating models, and consolidating its procurement and supply chain processes. EDO is focused on managing the assets to improve cash flow, as well as identifying and structuring new income-generating opportunities. With these initiatives, EDO is bolstering Oman’s energy security and providing a steady revenue stream for the government.
