EDO Secures Additional International Funding: Key Implications for Investors and Entrepreneurs in Oman
Energy Development Oman Completes Successful Sukuk Tap Issuance
MUSCAT, MAY 19 – Energy Development Oman (EDO) has announced the successful completion of a tap issuance on its existing $650 million, 10-year sukuk. This issuance raised an additional $200 million, bringing the total amount to $850 million. The sukuk, which features a profit rate of 5.14%, is set to mature in January 2036.
This tap issuance is a key element of EDO’s broader funding strategy, aimed at supporting the company’s annual capital expenditure while effectively managing its debt maturity profile. It also ensures a diversified mix of financing sources from both banking and international capital markets.
In the context of ongoing geopolitical challenges affecting global financial markets, EDO remained vigilant about market conditions and investor sentiment. The company identified a timely opportunity to execute the issuance, bolstered by Oman’s macroeconomic resilience.
The transaction was priced at a credit spread of 77 basis points over the 10-year U.S. Treasury benchmark, representing a significantly tighter level than the original issuance. This reflects strong investor demand for both EDO’s credit and exposure to Omani sovereign bonds. HSBC served as the Sole Bookrunner for this transaction.
Eng Sultan al Mamari, Chief Financial Officer at EDO, commented, “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 robust response 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 establishment, EDO has been instrumental in fostering a more resilient and commercially sustainable energy sector in Oman. Through consistent operational performance, disciplined capital allocation, and enhanced integration across the energy value chain, the company has ensured stable hydrocarbon production, reinforced national energy security, and positioned the sector as a long-term economic driver for the Sultanate of Oman.
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The successful tap issuance of EDO’s sukuk highlights Oman’s economic resilience و ال strong appetite for investment in its energy sector. This creates opportunities for businesses to align with strategic infrastructure and energy projectsفي حين ينبغي للمستثمرين أن يأخذوا في الاعتبار navigating the emerging market potential amidst global uncertainties. Moving forward, a focus on diverse financing strategies may yield competitive advantages in Oman’s evolving landscape.
