Oman Electricity Transmission Company (OETC), the sole owner and operator of the Sultanate’s electricity transmission network, has successfully priced and issued its inaugural green sukuk worth RO 288.5 million (USD 750 million) for a term of five years. This landmark issuance marks a major milestone in sustainable financing and underscores OETC’s alignment with the goals of Oman Vision 2040.
Investor interest in the sukuk was exceptionally strong, with demand exceeding 2.8 times the subscription volume. This remarkable response highlights investor confidence in OETC’s strategic importance to Oman’s energy sector and its sound financial position. The company’s solid credit ratings of Ba1 (stable) from Moody’s and BB+ (stable) from Fitch further reflect its financial strength and commitment to sustainability.
The issuance is fully aligned with Oman Vision 2040, which emphasizes economic diversification, environmental sustainability, and the transition to a low-carbon economy. The proceeds from the green sukuk will be used to finance and refinance eligible green projects such as renewable energy interconnections, grid modernization, energy efficiency improvements, and upgrades to the electricity transmission infrastructure to support the integration of clean energy.
This transaction also supports Oman’s national targets of producing 30 per cent of its electricity from renewable sources by 2030 and achieving carbon neutrality by 2050. By channelling funds into green initiatives, OETC is helping to accelerate the country’s transition toward a more sustainable and energy-efficient future.
The issuance was arranged by a consortium of leading international and regional banks. Citi, JPMorgan, and Standard Chartered acted as joint global coordinators, while Abu Dhabi Commercial Bank, Bank ABC, Bank Muscat, Crédit Agricole, Dubai Islamic Bank, Mashreq Bank, and Oman Investment Bank served as lead managers and bookrunners.
Commenting on the success of the issuance, Eng. Hisham bin Abdullah Al Riyami, Acting Chief Executive Officer of OETC, said the sukuk represents a significant step toward building a more sustainable and resilient electricity grid. He noted that the strong investor response reflects confidence in OETC’s long-term growth strategy and Oman’s stable economic and regulatory environment.
Through this pioneering green sukuk, OETC is reinforcing its position as a key enabler of Oman’s sustainable energy transition. The initiative not only strengthens the company’s financial foundation but also sets a new benchmark for Shariah-compliant sustainable financing in the region. It reflects OETC’s ongoing commitment to responsible investment, environmental stewardship, and supporting Oman’s broader vision of a diversified and future-ready economy.