Omani Energy Giant Secures $750 Million Through Islamic Bond Offering

Energy Development Oman (EDO), the Sultanate's national energy champion, successfully concluded a $750 million issuance of a Sukuk, an Islamic finance instrument. The offering, which reflects strong global investor confidence in both EDO and Oman's economic direction, was met with overwhelming demand, exceeding subscriptions by more than four times.

This latest Sukuk marks EDO's second foray into the Islamic finance market, following a $1 billion issuance in September 2023. The successful offering highlights EDO's growing financial strength and its commitment to playing a pivotal role in Oman's energy strategy.

The seven-year Sukuk was priced competitively at a profit rate of 5. 662%, demonstrating a significant improvement compared to EDO's previous issuance, which carried a profit rate of 5. 875%. This favorable outcome translates to cost savings for both EDO and the nation.

EDO's Chief Financial Officer, Sultan Al Mamari, expressed his satisfaction with the Sukuk's success. "This issuance represents a significant milestone for EDO, particularly considering it's our second Sukuk offering within the past nine months, " he remarked. "The attractive profit rate secured underscores international investor confidence in our unwavering dedication to bolstering Oman's energy strategy. "

The geographically diverse investor participation, exceeding 115 orders from across Europe, the United Kingdom, the United States, the Middle East, and Asia, further strengthens the positive sentiment surrounding the issuance. This widespread interest signifies global recognition of EDO's financial stability and its strategic role within Oman's energy sector.

The proceeds generated from the Sukuk issuance will be used to finance EDO's ongoing and future projects, propelling the company's mission to ensure Oman's energy security and contribute to the nation's economic diversification goals. With this successful Sukuk issuance, EDO has secured a vital source of funding to drive its strategic growth initiatives and contribute to Oman's long-term economic development.