Muscat: Energy Development Oman (EDO) has successfully raised an additional $200 million through a tap issuance of its existing 10-year sukuk. The latest issuance increases the total sukuk size from $650 million to $850 million.
The sukuk carries a profit rate of 5.14% and is set to mature in January 2036. EDO stated that the issuance is part of its broader financing strategy to support annual capital expenditure requirements, manage debt maturities effectively, and maintain a diversified funding base through banking and international capital markets.
The company said it carefully monitored market conditions and investor sentiment amid ongoing geopolitical uncertainty in global financial markets. According to EDO, Oman’s strong macroeconomic stability helped create a favorable environment for the transaction.
The sukuk was priced at a credit spread of 77 basis points over the 10-year US Treasury benchmark, which is tighter than the level achieved during the original issuance. This reflects strong investor confidence in both EDO and Oman’s economic outlook.
HSBC acted as the sole bookrunner for the transaction.
Sultan Al Mamari, Chief Financial Officer of EDO, said the successful upsizing of the sukuk demonstrates strong international investor confidence in Oman’s economy and EDO’s long-term financial strategy. He added that the company was pleased to secure attractive long-term financing despite continued uncertainty in global markets.
Since its establishment, EDO has played an important role in strengthening Oman’s energy sector through disciplined investments, operational efficiency, and greater integration across the energy value chain. The company continues to support national energy security and contribute to the Sultanate’s long-term economic growth.
EDO manages the commercial development of Block 6, where it holds a 60% stake in the oil concession and full ownership of the gas concession. The company is also supporting Oman’s energy transition efforts through investments in renewable energy projects, including solar and wind power initiatives.